Stock of the Day

July 12, 2024

ProKidney (PROK)

$1.89
+$0.06 (+3.3%)
Market Cap: $553.25M

About ProKidney

ProKidney Corp., a clinical-stage biotechnology company, provides transformative proprietary cell therapy platform for treating various chronic kidney diseases in the United States. The company's lead product is Renal Autologous Cell Therapy (REACT), an autologous homologous cell admixture, which has completed Phase I clinical trial for REACT in patients with congenital anomalies of the Kidney and Urinary Tract (CAKUT), as well as in Phase III and Phase II clinical trials for the treatment of moderate to severe diabetic kidney disease. ProKidney Corp. founded in 2015 and is headquartered in Winston-Salem, North Carolina.

Today's Trend

ProKidney Corp. (NASDAQ: PROK) is under pressure as investors weigh renewed concerns about its cash runway, clinical execution, and continued operating losses. Shares are trading near their 12-month low and below both their 50-day and 200-day moving averages, indicating weak market momentum.

  • HC Wainwright maintained a Buy rating and a $12 price target, while modestly improving its fourth-quarter 2026 EPS forecast to a loss of $0.11 from a loss of $0.13. This bullish valuation view provides some potential upside if ProKidney’s clinical program succeeds. FY2030 EPS Estimates for ProKidney Reduced by HC Wainwright
  • Morgan Stanley initiated or reiterated a Hold rating on ProKidney, signaling limited conviction in the near-term risk-reward balance and adding to the cautious analyst backdrop. ProKidney Receives a Hold from Morgan Stanley
  • HC Wainwright lowered its EPS forecasts for 2026 through 2029, including estimates of losses of $0.52, $0.56, $0.55, and $0.39, respectively. Although the firm remains bullish, the revisions point to higher expected losses and a slower path to profitability.
  • A bearish analysis argued that ProKidney’s lead therapy, rilparencel, has produced weak and potentially confounded Phase 2 results. The pivotal Phase 3 PROACT data expected in 2027 is described as a “do-or-die” catalyst, while the company’s roughly $181.6 million cash balance and high cash burn may fund operations only into mid-2027. This raises dilution and going-concern risks before the key data readout. ProKidney Do-Or-Die Phase 3 Meets a Dwindling Balance Sheet

Overall, the stock’s decline appears driven more by financing and clinical-trial risk than by a single new corporate announcement. Investors are likely awaiting PROACT results while evaluating whether ProKidney can avoid raising additional capital before reaching that milestone.

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