Prometheus Biosciences

Prometheus Biosciences is a biotechnology company engaged in the discovery, development, and commercialization of precision therapies and companion diagnostic products for autoimmune diseases. It is currently focused on inflammatory bowel disease (IBD). The company’s precision medicine platform Prometheus 360 uses data science and machine learning to identify new drug targets and unique disease biomarkers from large gastrointestinal bioinformatics databases. 

Prometheus’ drug candidate pipeline of treatments for IBD includes PRA023, the company’s lead program, which is an IgG1 humanized monoclonal antibody (mAb) that has been shown to block the tumor TL1A gene associated with both intestinal inflammation and fibrosis. PRA023 has the potential to improve outcomes for moderate-to-severe IBD patients who have increased TL1A expression. PRA023 is in Phase 3 clinical trials for the treatment of ulcerative colitis and Crohn’s disease. The company is also developing a companion diagnostic product in parallel to the drug, to identify patients more likely to respond to its treatment. Its second precision candidate, PRA052, an antibody to treat inflammatory bowel disease, received investigational new drug approval from FDA in Q3 2022 and initiated a Phase 1 clinical study. The company also has three programs in its drug development pipeline in the validation stage, led by another IBD drug that targets a member of the TNF superfamily. 

In April 2023 , the company entered a definitive agreement with Merck, a multinational pharmaceutical company, in which the latter, through a subsidiary, will acquire Prometheus for a total cash consideration of USD 10.8 billion or USD 200 per share. 

Key partnerships and customers

In 2019, the company entered into a multi-target strategic collaboration with biopharma company Takeda to identify and develop targeted therapies for IBD as well as to develop companion diagnostics for these targets. 

Funding and Financials

The company began trading on Nasdaq under the ticker symbol “RXDX” in March 2021, raising USD 190 million at its initial public offering. In December 2022, the company raised USD 250 million via an underwritten public offering. The new funds along with its existing cash balance were allocated towards advancing the development of PRA023, PRA052, and its other R&D programs, for working capital and general expenses. 

For 2022, the company reported a net loss of USD 141.8 million (up 57.1% YoY) and collaboration revenue of USD 6.8 million (up 119.4% YoY). In Q1 2023 , net losses for the quarter increased 27.5% YoY to USD 40.8 million. It reported collaboration and license revenue of USD 1.1 million, compared with USD 3.9 million.