Why Is Alzheimer's Player Prothena Stock Trading Higher Today?

Prothena Corporation plc PRTA is reportedly talking to advisors, potentially preparing for a sale.

The closely watched Alzheimer's player is due to report key data expected in the coming months.

Prothena's wholly owned programs include birtamimab for AL amyloidosis and a portfolio of programs for the potential treatment of Alzheimer's disease, including PRX012 that targets Aβ (amyloid beta) and PRX123, the company's dual Aβ-tau vaccine. 

Prothena's collaborations include prasinezumab for Parkinson's disease; NNC6019/PRX004 for ATTR amyloidosis, and programs that target tau (PRX005), TDP-43, and an undisclosed target (PRX019) for neurodegenerative diseases.

The company would likely attract interest from large drugmakers if it decides to go ahead, Bloomberg noted, citing people close to the matter. Though deliberations are early, Prothena could remain independent for longer.

The company has agreements with large drugmakers such as Bristol Myers Squibb Co BMY, Roche Holding AG RHHBY, and Novo Nordisk A/S NVO.

Most recently, Prothena announced that Bristol Myers Squibb exercised its option under the global neuroscience research and development collaboration to obtain the exclusive worldwide commercial rights for PRX005 and will pay Prothena $55 million. 

PRX005, an anti-tau antibody, specifically targets an area within the microtubule-binding region (MTBR) of tau for potentially treating Alzheimer's disease.

Prothena was spun off from Elan Corp. in 2012.

Price Action: PRTA shares are up 20% at $52.90 on the last check Monday.

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