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On Tuesday, H.C. Wainwright reaffirmed its Buy rating and $54.00 price target for Protagonist Therapeutics (NASDAQ:PTGX) stock, which currently trades at $38.50 and has surged 9.72% in the past week. The endorsement follows the release of positive results from the VERIFY trial for rusfertide, which is being developed as a treatment for polycythemia vera (PV), a type of blood cancer. According to InvestingPro data, the stock has attracted strong analyst interest, with targets ranging from $38 to $73.
Douglas Tsao, an analyst at H.C. Wainwright, expressed satisfaction with the topline results, which he believes align with the earlier REVIVE study outcomes. He emphasized the significant clinical response observed in the trial, where 77% of rusfertide-treated patients (n=146) were responders versus 33% in the placebo group (n=146) during weeks 20-32. These patients did not require phlebotomy, a current standard of care procedure for PV, during this period. The market has responded positively to these developments, with InvestingPro showing the company maintains an excellent financial health score of 4.0 out of 5.
The study also met a key secondary endpoint, which was a primary endpoint for EU regulatory agencies, concerning the mean number of phlebotomies through week 32. The rusfertide group averaged 0.5 phlebotomies per patient, with 73% not requiring any, whereas the placebo group had an average of 1.8 phlebotomies, with only 22% of patients avoiding the procedure.
Key opinion leaders (KOLs) in the field have indicated that phlebotomy can be a problematic and risky treatment for PV patients. The potential of rusfertide to eliminate the need for this procedure has been welcomed. The VERIFY trial, coupled with the earlier PACIFIC study data, suggests that rusfertide has a rapid onset of effect and could serve as an induction therapy, potentially removing the need for phlebotomy entirely.
The management of Protagonist Therapeutics attributed the "higher-than-expected" placebo effect to the diverse global patient population enrolled in the trial. This variability was anticipated, as KOLs had previously noted that standards of care differ by country, potentially increasing variability in treatment groups and placebo effects.
H.C. Wainwright’s reiterated rating and price target reflect confidence in rusfertide’s potential to become a blockbuster in the PV market based on the clinical trial outcomes. With a market capitalization of $2.36 billion and impressive gross margins of 100%, Protagonist Therapeutics shows strong commercial potential. For deeper insights into PTGX’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Protagonist Therapeutics has garnered significant attention following the release of positive results from its Phase 3 VERIFY trial for rusfertide, a treatment for polycythemia vera (PV). The trial met all primary and key secondary endpoints, with a notable 77% of patients responding to the treatment, as highlighted by JPMorgan, which raised its price target for the company to $57. BTIG also increased its price target to $73, maintaining a Buy rating, citing the trial’s success and potential benefits in regulatory discussions. Truist Securities and TD Cowen both maintained their Buy ratings with price targets of $60 and $65, respectively, emphasizing the drug’s market potential and clean safety profile.
The positive trial outcomes have paved the way for a New Drug Application (NDA) filing anticipated in the fourth quarter of 2025. Protagonist Therapeutics could receive significant financial benefits, including a $25 million milestone payment and potential royalties, if they opt out of their profit-sharing agreement with Takeda. Analysts from Truist and TD Cowen project a $1-2 billion market opportunity for rusfertide, with key opinion leaders expecting its use in 20-30% of patients upon launch.
Additionally, the company plans to present more detailed trial data at upcoming medical conferences, providing further insights into the drug’s efficacy and safety. Investors are also looking forward to the results of the Phase 2b UC ANTHEM trial, expected later this month, which could further impact Protagonist’s prospects.
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