Why Prothena Corporation PLC Shares Leaped Higher

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Prothena (NASDAQ: PRTA  ) , a clinical-stage biopharmaceutical company focused on developing antibodies for the treatment of diseases caused by protein misfolding or cell adhesion, jumped as much as 13% after issuing a press release last night updating investors on the progress of PRX002, its experimental Parkinson's disease therapy.

So what: According to its press release, Prothena notes that it has dosed its first patient in a phase 1 double-blind dose-escalating study of PRX002. As per the norm for phase 1 studies, it's designed to test the safety, tolerability, and pharmacokinetics of PRX002. In addition, since it successfully initiated this study and dosed the first patient Prothena is now entitled to a $15 million milestone payment from collaborative partner Roche (NASDAQOTH: RHHBY  ) . As noted in the press release, Prothena, with its latest $15 million milestone payment, has earned $45 million from Roche with regard to PRX002's development thus far.

Now what: On one hand we have shareholders clearly excited that all of Prothena's hard work is finally paying off into actual clinical studies. We also have a mammoth global pharmaceutical giant in Roche partnered with Prothena, and lending hope that there may indeed be substance behind its lofty valuation. Then again, we have to keep in mind that this is merely the initiation of a phase 1 study -- or to make a baseball analogy, the first batter of the game just stepped to the plate. There's a long way to go before PRX002 should even remotely be on investors' radars. You'll also want to keep in mind that the ultimate success rate of Parkinson's disease therapies is pretty low. With that in mind, I'm perfectly happy sticking to the sidelines and watching Prothena from afar.

Prothena shares may have jumped today, but they'll probably struggle to keep pace with this top stock in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2909061, ~/Articles/ArticleHandler.aspx, 12/21/2014 7:09:12 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement