Prothena (PRTA), Bristol Myers Tie Up for Second Neuro Candidate

Core Viewpoint - Prothena Corporation plc has entered into a licensing agreement with Bristol Myers Squibb for PRX019, a potential treatment for neurodegenerative diseases, marking the second candidate licensed under their collaboration [1][2]. Group 1: Licensing Agreement Details - Bristol Myers has secured exclusive global rights to PRX019, following FDA clearance of Prothena's investigational new drug application in December 2023 [2]. - Prothena will receive an upfront payment of $80 million and may earn up to $617.5 million in additional milestone payments, along with tiered royalties on net sales [4]. - The original collaboration agreement was established in 2018 with Celgene, now part of Bristol Myers, allowing for the acquisition of rights to develop antibodies targeting tau, TDP-43, and an undisclosed target [5]. Group 2: Financial and Market Impact - Prothena's shares rose by 2.4% in after-market trading on May 28, despite a year-to-date decline of 45.1%, compared to a 5.7% decline in the industry [3]. - The phase I studies for the in-licensed candidates will be funded by Prothena, with Bristol Myers having the option to take over development and commercialization based on study results [6]. Group 3: Other Candidates and Collaborations - The first candidate licensed under this agreement is BMS-986446 (formerly PRX005), an anti-tau antibody in development for Alzheimer's Disease [7]. - Prothena's lead candidate is PRX012, targeting amyloid beta, which is in early-stage development for Alzheimer's Disease [8].