A biopharmaceutical innovator specializing in rare disease therapies that maintains substantial cash reserves while navigating a period of high R&D expenditure and declining annual revenue.
An investor might consider this stock if they believe in the transformative potential of Prothena's rare disease pipeline and expect future revenue to rebound as new therapies reach market approval. The company retains over $307M in cash, offering a safety net that could support operations through upcoming clinical trials or bridge gaps until commercial success is realized.
Potential buyers should avoid this stock due to the alarming 92% drop in revenue year-over-year and a widening net loss that has doubled compared to the previous period. With operating expenses exceeding $200M and no immediate path to profitability visible, the company faces an existential threat of running out of cash before generating sustainable commercial returns.
Prothena Corp Public Ltd Co is a biopharmaceutical company focused on developing novel therapies for rare diseases and chronic conditions, primarily serving markets in the United States and Europe. The company leverages its proprietary technology platform to create targeted treatments for unmet medical needs, with recent financial data reflecting significant investment in research and development despite current operational losses.
Recent financial performance reveals a sharp deterioration in revenue, plummeting from $135.2M in the prior year to just $9.7M currently, while net losses have widened significantly to $244.1M. The company continues to burn through cash at a rate of $163.6M from operations, supported largely by non-cash adjustments and its large cash balance, but the trajectory suggests a critical need for strategic pivots or successful product launches to reverse the negative trend.
The biopharmaceutical industry is characterized by high capital intensity, long development cycles, and significant regulatory hurdles, particularly for rare disease treatments which require specialized clinical trial designs. Companies in this sector often operate at a loss for years while investing heavily in R&D to secure exclusive rights to novel mechanisms of action.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $53.9M | $91.4M | $135.2M | $9.7M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $53.9M | $91.4M | $135.2M | $9.7M |
| Operating Expenses | $185.5M | $282.4M | $289.7M | $224.3M |
| Operating Income | $-131.6M | $-191.0M | $-154.6M | $-214.6M |
| R&D | $135.6M | $220.6M | $222.5M | $134.9M |
| G&A | $49.9M | $61.8M | $67.2M | $59.4M |
| Stock-Based Comp | $31.3M | $40.9M | $46.0M | $37.6M |
| D&A | $744.0K | $928.0K | $893.0K | $895.0K |
| Depreciation | $700.0K | $900.0K | $900.0K | $900.0K |
| Other OpEx | $0 | $0 | $0 | $30.1M |
| Non-Operating Income | $6.0M | $30.6M | $25.6M | $13.8M |
| Pre-Tax Income | $-125.6M | $-160.5M | $-128.9M | $-200.8M |
| Income Tax | $-8.7M | $-13.5M | $-6.6M | $43.3M |
| Continuing Ops | $-116.9M | $-147.0M | $-122.3M | $-244.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-116.9M | $-147.0M | $-122.3M | $-244.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-116.9M | $-147.0M | $-122.3M | $-244.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $719.1M | $639.3M | $485.4M | $315.2M |
| Cash & Equivalents | $710.4M | $618.8M | $471.4M | $307.5M |
| Accounts Receivable | — | $5.2M | $0 | — |
| Prepaid Expenses | $8.7M | $13.9M | $14.0M | $7.7M |
| Other Current Assets | $0 | $1.4M | $0 | $0 |
| Long-Term Assets | $38.9M | $57.1M | $61.7M | $11.6M |
| PP&E (Net) | $1.7M | $3.8M | $3.1M | $2.1M |
| Operating Leases | $6.3M | $12.2M | $10.7M | $8.1M |
| Other LT Assets | $30.9M | $41.1M | $47.9M | $1.3M |
| Total Assets | $758.0M | $696.4M | $547.1M | $326.8M |
| Current Liabilities | $50.1M | $56.9M | $48.5M | $40.8M |
| Accounts Payable | $9.3M | $25.4M | $7.8M | $5.9M |
| Current Leases | $6.5M | $1.1M | $2.6M | $2.9M |
| Other Current Liab | $34.4M | $30.4M | $38.1M | $32.1M |
| Long-Term Liabilities | $85.8M | $78.1M | $11.7M | $5.5M |
| LT Operating Leases | $0 | $10.7M | $8.2M | $5.5M |
| Other LT Liab | $85.8M | $67.4M | $3.4M | $0 |
| Total Liabilities | $136.0M | $135.0M | $60.2M | $46.3M |
| Shareholders' Equity | $622.0M | $561.4M | $486.9M | $280.5M |
| Paid-In Capital | $1.45B | $1.54B | $1.59B | $1.63B |
| Retained Earnings | $-833.0M | $-980.0M | $-1.10B | $-1.35B |
| Total L&E | $758.0M | $696.4M | $547.1M | $326.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-116.9M | $-147.0M | $-122.3M | $-244.1M |
| Non-Cash Adjustments | $5.3M | $18.3M | $55.6M | $105.9M |
| Working Capital Changes | $2.8M | $-5.1M | $-83.3M | $-25.4M |
| Cash from Operations | $-108.8M | $-133.9M | $-150.1M | $-163.6M |
| Cash from Investing | $-464.0K | $-2.8M | $-298.0K | $-138.0K |
| Cash from Financing | $241.5M | $45.1M | $1.6M | $-139.0K |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $132.2M | $-91.6M | $-148.8M | $-163.9M |
| Beginning Cash | $580.4M | $712.6M | $621.0M | $472.2M |
| Ending Cash | $712.6M | $621.0M | $472.2M | $308.4M |
The company's financial profile suggests operations are driven by a single core segment focused on proprietary drug development and commercialization, where recent costs of revenue are negligible compared to massive operating expenses dominated by research and development ($134.9M) and general administration ($59.4M).
1. Severe profitability challenges with a net loss of $244.1M and negative operating profit, raising concerns about the sustainability of current burn rates. 2. Drastic revenue contraction in the latest period from $135.2M to $9.7M, which threatens the company's ability to fund its expensive R&D pipeline without external capital. 3. Accumulated retained earnings deficit of $1.35B highlights historical financial instability and reliance on financing activities.
1. Substantial liquidity position with over $307M in cash providing a robust runway for long-term R&D projects despite current deficits. 2. High value-add potential inherent in rare disease therapies which often command premium pricing and face less direct competition. 3. Significant non-cash adjustments ($105.9M) including share-based compensation ($37.6M) indicate an employee-focused culture typical of high-growth biotech firms.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.