Citizens JMP Slashes Prothena (PRTA) to $29 from $78 After AFFIRM-AL Trial Fails

On May 27, Citizens JMP lowered the firm’s price target on Prothena Corporation plc (NASDAQ:PRTA) to $29 from $78 but kept an Outperform rating on the shares.

The notable price target decrease came after Prothena Corporation plc (NASDAQ:PRTA) announced negative results from the Phase 3 AFFIRM-AL trial for birtamimab in AL amyloidosis on May 23. The trial missed the primary and secondary endpoints, which is why the company plans to discontinue it.

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A biopharmaceutical facility with technicians working on a manufacturing line of treatments and preventions.

The analyst told investors in a research note that substantial cost-reducing initiatives are expected to follow the discontinuation of the AFFIRM-AL trial, including a considerable workforce reduction. Citizens JMP also announced plans to remove birtamimab from its model.

However, the firm is bullish on Prothena Corporation plc (NASDAQ:PRTA), primarily due to the potential success of PRX012, its anti-Abeta immunotherapy for Alzheimer’s disease.

Prothena Corporation (NASDAQ:PRTA) is a clinical-stage neuroscience company that discovers and develops novel therapies for serious diseases. Its clinical pipeline includes both partnered and wholly owned therapies for AL amyloidosis, Alzheimer’s disease, ATTR amyloidosis, Parkinson’s disease, and other neurodegenerative diseases.

While we acknowledge the potential of PRTA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PRTA and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.