Prothena Corporation plc reported its fourth‑quarter and full‑year 2025 financial results on February 19, 2026. The company posted a net loss of $21.6 million for the quarter and $244.1 million for the year, a significant improvement over the $58.0 million and $122.3 million losses recorded in the same periods a year earlier. Revenue for the quarter was $21,000, a sharp decline from the $2.1 million earned in Q4 2024, while full‑year revenue fell to $9.7 million from $135.2 million in 2024, largely reflecting the loss of a one‑time $80 million upfront payment from Bristol Myers Squibb that was recognized in 2024.
Prothena’s earnings per share for Q4 2025 were $-0.40, beating the consensus estimate of $-0.45 by $0.05. The beat was driven by disciplined cost management that offset the sharp revenue decline, allowing the company to narrow its loss per share despite a 4‑fold increase in operating expenses. The company’s guidance for 2026 projects net cash used in operating and investing activities of $50–$55 million, which would leave an ending cash balance of roughly $255 million, down from $308.4 million at the end of 2025. This guidance signals a modest improvement in cash burn, reflecting tighter spending and a focus on maintaining liquidity until milestone payments are received.
Cash and cash equivalents stood at $308.4 million as of December 31, 2025, a decline from $471.4 million at the end of 2024. Prothena noted that it could receive up to $105 million in milestone payments in 2026 from its partnered programs with Roche, Novo Nordisk, and Bristol Myers Squibb. These payments are contingent on the progress of Phase 3 trials for prasinezumab in early Parkinson’s disease and coramitug in ATTR amyloidosis with cardiomyopathy, both of which are expected to complete in 2029. The company’s management emphasized that its pipeline is primarily advanced through collaborations and that it is focused on “capturing the value embedded in our clinical partnerships,” while continuing to build optionality through platform and pre‑clinical work.
The revenue miss was substantial: the company reported only $21,000 in Q4 revenue versus analyst expectations of $0.67 million to $3.0 million. The miss was largely due to the absence of the $80 million upfront payment that was recognized in 2024, leaving only a modest $2.1 million in collaboration revenue from Bristol Myers Squibb in the quarter. Management highlighted that the company’s revenue stream is highly dependent on milestone payments and that the current quarter’s revenue reflects the timing of those payments rather than a decline in partnership activity.
Market reaction to the earnings was muted, with investors focusing on the company’s long‑term pipeline rather than its short‑term financials. The EPS beat and the reduced cash burn guidance provided some reassurance, but the significant revenue miss and continued net losses underscored the company’s reliance on future milestone payments to sustain operations. Analysts noted that while the company’s cash runway remains adequate for the next 12–18 months, the near‑term financials highlight the importance of securing milestone payments and managing burn rate.
Prothena’s guidance for 2026 reflects a cautious but optimistic outlook. By projecting a lower cash burn and a stable ending cash balance, management signals confidence in its ability to navigate the long development cycles of its partnered programs while maintaining financial discipline. The company’s focus on capturing value from collaborations and building optionality through platform work positions it to potentially accelerate revenue generation once milestone payments materialize.
The company’s strategic emphasis on partnering with major pharmaceutical companies and advancing its pipeline through collaborative programs remains a key driver of its future growth prospects. The earnings release underscores the importance of milestone payments and the company’s ability to manage costs, while also highlighting the challenges of generating revenue in a pre‑commercial stage. Investors will continue to monitor the progress of the partnered trials and the timing of milestone payments as critical factors in assessing Prothena’s financial health and long‑term prospects.
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