Prothena Corporation plc (NASDAQ: PRTA) authorized a share repurchase plan that allows the company to buy back up to $100 million of its ordinary shares. The plan, announced on February 27, 2026, will remain in effect through December 31, 2026, and can be executed in the open market or through Rule 10b‑18 or 10b‑5‑1 transactions, subject to market conditions and regulatory requirements.
As of December 31, 2025, Prothena’s cash, cash equivalents, and restricted cash totaled $308.4 million, with no debt on the balance sheet. Management projects that, excluding any milestone payments expected in 2026, the company will end the year with roughly $255 million in cash, cash equivalents, and restricted cash. The company also anticipates up to $105 million in aggregate clinical milestone payments in 2026 from partners Novo Nordisk and Bristol Myers Squibb, which will further strengthen liquidity and support the repurchase program.
Prothena’s financial trajectory shows a significant shift from the prior year. Cash fell from $472.2 million at the end of 2024 to $331.7 million on September 30, 2025, while total revenue dropped from $135.2 million in 2024 to $9.7 million in 2025. Net loss widened from $122.3 million in 2024 to $244.1 million in 2025. The decline in revenue reflects lower collaboration payments, but the company offset costs through milestone receipts, restructuring charges, and workforce reductions, preserving a strong cash position.
The share repurchase authorization signals management’s confidence in Prothena’s balance sheet and its ability to fund ongoing clinical development and potential milestone obligations. By maintaining a sizable cash reserve and a debt‑free stance, the company can pursue late‑stage pipeline programs while returning value to shareholders. The plan’s flexibility—allowing buybacks in the open market or under specific SEC rules—provides a mechanism to support the share price when market conditions are favorable.
The board retains the discretion to suspend or discontinue the plan at any time, and the expiration date of December 31, 2026, ensures that the authorization remains relevant for the current fiscal year. The combination of a robust cash position, anticipated milestone payments, and a clear liquidity strategy positions Prothena to manage its clinical milestones and shareholder returns simultaneously.
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