BTIG maintains buy rating on Protagonist Therapeutics stock

Published 03/06/2025, 11:08
BTIG maintains buy rating on Protagonist Therapeutics stock

On Tuesday, BTIG analysts reiterated their Buy rating and $82.00 price target for Protagonist Therapeutics stock (NASDAQ: NASDAQ:PTGX), representing the highest among analyst targets ranging from $41 to $82. According to InvestingPro analysis, the stock appears overvalued at current levels, though it has demonstrated remarkable momentum with a 68% return over the past year. This decision follows the presentation of additional data at ASCO 2025, which reinforced the efficacy of rusfertide in treating polycythemia vera (PV).

In March 2025, Protagonist Therapeutics shared topline results that highlighted rusfertide’s ability to improve symptoms in PV. The recent data presented at ASCO 2025 demonstrated consistent response benefits across various subgroups, including different PV risk statuses and ongoing concurrent cytoreductive therapy (CRT). This consistency supports the applicability of the findings to the broader PV population. The company’s strong financial health, rated as "GREAT" by InvestingPro, with a robust current ratio of 17.26, positions it well to advance its clinical programs. Discover 15+ additional exclusive insights available on InvestingPro.

The detailed analysis included key secondary endpoints such as the mean number of phlebotomies, hematocrit levels, and scores from the PROMIS Fatigue SF-8a and MFSAF TSS7. Rusfertide showed significant benefits across these endpoints, particularly in reducing mean phlebotomies across subgroups. These results underscore rusfertide’s potential to enhance PV treatment and improve common debilitating symptoms.

With a market capitalization of $3.1 billion and more cash than debt on its balance sheet, Protagonist Therapeutics plans to file a New Drug Application (NDA) in the fourth quarter of 2025. The company also remains eligible to opt out of its profit-sharing agreement with Takeda, potentially receiving a $400 million opt-out payment and up to $950 million in additional milestones, along with tiered royalties on worldwide net sales.

In other recent news, Protagonist Therapeutics has reported significant developments in its clinical trials and received various analyst updates. The company, in collaboration with Takeda, presented pivotal Phase 3 results for rusfertide at the American Society of Clinical Oncology conference, addressing previous safety concerns and highlighting potential changes in treatment paradigms for polycythemia vera. JPMorgan reaffirmed an Overweight rating for Protagonist, citing the strength of the data and estimating risk-adjusted peak sales of $1.3 billion by 2034. Meanwhile, H.C. Wainwright and BTIG maintained Buy ratings with price targets of $80 and $82, respectively, following positive results from the ICONIC-LEAD study for icotrokinra in treating psoriasis. The study showed promising outcomes in adolescents, with icotrokinra outperforming existing oral therapies and demonstrating a favorable safety profile. BMO Capital Markets also raised its price target to $72, reflecting optimism about Protagonist’s treatments for plaque psoriasis and ulcerative colitis, and reiterated an Outperform rating. Jefferies supported a Buy rating with a $68 target, noting Protagonist’s promising clinical trial results for icotrokinra in ulcerative colitis, suggesting potential progression into Phase 3 trials. These developments underscore the growing interest and confidence in Protagonist Therapeutics’ pipeline and market potential.

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