Shares of Prothena Corporation (NASDAQ:PRTA) added almost 25% on rumours the biotechnology firm is exploring a sale ahead of the release of key data from its highly anticipated Phase 1 Alzheimer’s Disease clinical trial expected in the coming months.
According to a report by Bloomberg citing people with knowledge of the matter, the Dublin, Ireland-based company has been speaking with advisors regarding its strategic options, which may include a sale or partnership.
Prothena is developing potential treatments for a range of neurodegenerative diseases. Its wholly-owned programs for Alzheimer’s include PRX012 which targets Aβ (amyloid beta); dual Aβ-tau vaccine PRX123; and birtamimab for the potential treatment of AL amyloidosis.
PRX012 was awarded Fast Track designation by the United States Food and Drug Administration (FDA) and is the subject of a closely watched ongoing Phase 1 study.
Prothena is also collaborating with major drugmakers including Roche on prasinezumab which targets alpha-synuclein for Parkinson’s Disease; with Novo Nordisk (NYSE:NVO) on NNC6019/PRX004 for the potential treatment of ATTR amyloidosis; and with Bristol-Myers Squibb Co (NYSE:BMY) on an undisclosed target.
A sale is likely to attract the attention of large drugmakers, sources told Bloomberg.
The firm could remain independent for longer should the data expected later this year be negative, the report said.
Prothena shares were up 24.5% at US$54.88 shortly before noon on Monday.
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