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On Monday, H.C. Wainwright analyst Douglas Tsao increased the price target for Protagonist Therapeutics (NASDAQ:PTGX) shares from $50.00 to $54.00, while reiterating a Buy rating on the stock. Currently trading at $38.75, PTGX has analyst targets ranging from $38 to $68, reflecting strong market confidence. The adjustment comes in anticipation of the Phase 3 results for rusfertide in the VERIFY study for polycythemia vera (PV), expected in March. The analyst highlighted the significant market opportunity for rusfertide, estimating its peak revenue to potentially reach $1-2 billion.InvestingPro analysis reveals 10 additional investment tips for PTGX, including crucial insights about the company’s financial health and market position. Get access to the comprehensive Pro Research Report for deeper analysis.
Earlier this month, Protagonist Therapeutics held an analyst meeting to discuss the unmet needs in PV treatment and the clinical data for rusfertide. The meeting reinforced the analyst’s optimistic outlook on the drug’s potential and increased confidence in the forthcoming data readout. Key opinion leaders (KOLs) at the meeting shared insights on how rusfertide could improve PV treatment by eliminating risks associated with phlebotomy and optimizing cytoreductive therapy, potentially reducing fatigue and other side effects.
With approximately 155,000 diagnosed PV patients in the United States and about 78,000 undergoing treatment, the potential for rusfertide appears substantial. Protagonist’s partnership with Takeda offers the company options to either share profits in the US and receive tiered royalties internationally or to opt-out and collect up to $1.6 billion in payments. The current expectation is that Protagonist will likely choose the opt-out scenario, given the greater assurance on cash flow it provides. The company’s strong financial position is evident in its impressive 624% revenue growth over the last twelve months and minimal debt-to-equity ratio of 0.02.
The analyst also noted that Protagonist’s decision-making window regarding the opt-in or opt-out scenario would be during the 90-day period starting 120 days after the New Drug Application (NDA) filing, which suggests a timeframe in the first half of 2026. According to InvestingPro, the company maintains an EXCELLENT financial health score of 3.96, with particularly strong cash flow metrics. Based on InvestingPro’s Fair Value analysis, the stock appears to be undervalued at current levels. The firm’s positive stance on the upcoming PV data led to an increase in the probability of success (PoS) for the program from 65% to 75%, which in turn justified the raised price target for Protagonist Therapeutics shares.
In other recent news, Protagonist Therapeutics has been the focus of multiple analyst reports and company developments. The company is advancing its lead candidate, rusfertide, through a Phase 3 clinical trial for polycythemia vera (PV), with results expected in March 2025. Analysts from Citizens JMP and Truist have reiterated positive ratings, with price targets of $58 and $60, respectively, citing the drug’s potential for treating PV. Additionally, Jefferies maintains a Buy rating with a $57 target, highlighting the collaboration with Takeda, which projects peak revenues for rusfertide between $1-2 billion.
Protagonist is also progressing with icotinib, an oral IL-23 receptor antagonist, in a Phase 2b trial for ulcerative colitis, with readouts anticipated in early 2025. The company has indicated that its financial runway extends beyond the fourth quarter of 2028, providing stability for ongoing clinical programs. In another development, Protagonist Therapeutics announced an executive role change, with Suneel Gupta, Ph.D., transitioning to Executive Vice President, Clinical Development. This move, effective January 1, 2025, was disclosed in a recent SEC filing, though the company has not provided specific reasons for the change. These developments are part of Protagonist’s broader efforts to advance its pipeline and address unmet medical needs.
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