Prothena restructuring to focus on neuroscience pipeline

Prothena (PRTA) has initiated a reorganization to align its resources on advancing its broad neuroscience pipeline – including its ongoing clinical-stage programs for PRX002/RG7935, being developed in collaboration with Roche (RHHBY), and its proprietary program PRX004, as well as its discovery-stage pipeline which includes a proprietary program targeting Abeta, and three programs being advanced as part of a neuroscience R&D collaboration with Celgene (CELG), including tau, TDP-43 and an undisclosed target. As a result of the discontinuation of the NEOD001 development program, Prothena has implemented a reorganization designed to concentrate resources around its neuroscience research, discovery and early development expertise to advance its discovery and clinical-stage pipeline and will reduce its workforce by approximately 57%. Following the reorganization to close down the NEOD001 program, and based on filling several open positions, Prothena expects its workforce to be approximately 63 positions. The company expects its 2018 net cash burn from operating and investing activities to be $40M-$50M, which includes $110M of cash provided by operating activities associated with the Celgene collaboration, and to end the year with approximately $421M in cash. Estimated 2018 net cash burn from operating and investing activities is primarily driven by a net loss of $170M-$185M, including an estimated $25M of non-cash share-based compensation expense. The estimated 2018 net loss includes $80M-$85M of operating expenses associated with NEOD001 and the company’s reorganization and approximately $8M of non-cash share-based compensation expense.

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