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On Monday, BTIG analyst Julian Harrison increased the price target on Protagonist Therapeutics (NASDAQ: NASDAQ:PTGX) shares to $73 from the previous target of $67, while sustaining a Buy rating on the stock. According to InvestingPro data, the company maintains an EXCELLENT financial health score of 3.94, with analyst targets ranging from $38 to $68. The revision follows the announcement of positive VERIFY study results for Protagonist’s drug candidate, rusfertide.
The VERIFY study met all endpoints, including the key secondary endpoint of phlebotomy rate, which is the pre-specified primary endpoint for European regulatory agencies. Harrison noted that rusfertide is the first treatment to demonstrate a statistically significant prospective benefit on symptoms, potentially offering a meaningful advantage in discussions with payors. The company’s strong financial position is evident in its impressive revenue growth of 624% over the last twelve months, with InvestingPro analysis showing more cash than debt on its balance sheet.
The successful results from the VERIFY trial are expected to facilitate the New Drug Application (NDA) filing process, which management anticipates will occur in the fourth quarter of 2025. Additionally, the positive outcomes have initiated a $25 million milestone payment to Protagonist upon the completion of the clinical study report.
Protagonist Therapeutics also has the option to withdraw from their profit-sharing agreement with Takeda (TAK, Not Rated) after the NDA filing. If they choose to opt out, Protagonist could receive a payment of $400 million, up to $950 million in additional milestones, including $75 million upon NDA approval, and tiered royalties ranging from 14% to 29% on worldwide net sales. This arrangement enables Protagonist to potentially reap substantial financial benefits from rusfertide’s success in treating polycythemia vera (PV).
With the uncertainty surrounding the VERIFY study now resolved, the focus is expected to shift towards the upcoming ANTHEM-UC data, anticipated later this month. Harrison previously expressed optimism about the potential for an active, safe, and easy-to-prescribe oral treatment option in inflammatory bowel disease (IBD), with Protagonist’s icotrokinra poised to meet this need. Trading at a P/E ratio of 8.64, the stock shows promising valuation metrics. For deeper insights into PTGX’s financial health and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Protagonist Therapeutics has been the focus of several analyst updates following positive results from its Phase III VERIFY study for rusfertide, aimed at treating polycythemia vera. Truist Securities maintained a Buy rating with a $60 target, highlighting the achievement of primary and secondary endpoints with high statistical significance. TD Cowen also reiterated a Buy rating and set a $65 target, noting a 44% placebo-adjusted response rate in the Phase III trial and a clean safety profile. JPMorgan increased its price target from $53 to $57, citing the strong trial data with a 77% patient response rate, which exceeded their expectations. H.C. Wainwright raised its price target to $54, emphasizing the significant market potential for rusfertide, with peak revenue estimates of $1-2 billion.
The company is planning to file a New Drug Application (NDA) in the latter half of 2025, with the potential market opportunity being reassessed. Analysts from various firms have expressed confidence in rusfertide’s commercial prospects, with key opinion leaders estimating its use in 20-30% of patients upon launch. Protagonist Therapeutics is also working in collaboration with Takeda, offering options for profit sharing or opt-out payments. The upcoming medical meetings are expected to provide more detailed data, which could further impact the company’s strategic decisions and market positioning.
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