PRTA - Prothena drops 9% as RBC Capital Markets downgrades citing valuation

• The shares of Prothena Corporation ( NASDAQ: PRTA ) dropped ~9% in the morning hours Friday after RBC Capital Markets downgraded the Alzheimer's drug developer to Sector Perform from Outperform, noting that the stock appears fairly valued after a ~98% rise since mid-2022.
• The clinical-stage biotech headquartered in Dublin, Ireland, advances multiple candidates targeting diseases from AL amyloidosis to Alzheimer's disease.
• The analysts led by Brian Abrahams argue that their near-term narrative on the company, based on its underappreciated pipeline and positive read-through from rival anti-amyloid therapies for Alzheimer's, "has mostly played out."
• Prothena ( PRTA ) shares could come under pressure as "more material de-risking data from the pipeline" comes out, the analysts wrote, even as they raised the per share target on the stock to $55 from $52, citing updates to the valuation model following the company's quarterly earnings.
• Late September, Prothena ( PRTA ) joined other Alzheimer's drug developers in a rally fueled by positive topline data Biogen ( BIIB ) and Eisai ( OTCPK:ESALF ) ( OTCPK:ESALY ) reported for their beta-amyloid targeting Alzheimer's candidate lecanemab.

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