US stock futures dip as Nvidia earnings spark little cheer
On Monday, Jefferies analyst Roger Song confirmed a Buy rating and a $68.00 price target for Protagonist Therapeutics (NASDAQ:PTGX) stock, which currently trades at $55.95 with a market capitalization of $3.43 billion. According to InvestingPro data, analysts maintain a strong bullish consensus with price targets ranging from $38 to $82. The endorsement follows recent updates from the company’s management regarding promising clinical trial results for their drug candidate, Icotrokinra, which is being developed as an oral treatment for ulcerative colitis (UC).
Protagonist Therapeutics recently announced that Icotrokinra met both the primary endpoint of clinical response and the secondary endpoint of clinical remission in its first UC data. These results align with Jefferies’ optimistic scenario, demonstrating what the firm considers "biological-competitive" efficacy compared to injectable treatments, including IL-23 biologics. The company’s strong financial position is reflected in its "EXCELLENT" InvestingPro Financial Health Score of 4.03, with notably strong cash flow and profitability metrics.
While specific details were not disclosed, Song noted that all three once-daily (QD) doses of the drug achieved statistical significance. This could suggest that lower doses might be effective compared to the doses used in psoriasis (PsO) treatments, which are typically around 200mg QD. This inference is supported by the drug’s mechanism of action and preclinical data.
Protagonist Therapeutics’ partner, Johnson & Johnson (JNJ), is expected to present detailed data at a future conference. According to Song, there is potential for Johnson & Johnson to expedite the drug’s progression into Phase 3 trials for both UC and Crohn’s disease (CD), given the encouraging trial outcomes.
In other recent news, Protagonist Therapeutics has reported several significant developments. Truist Securities upgraded its price target for Protagonist Therapeutics to $76, maintaining a Buy rating, following positive Phase 2b trial results for rusfertide, a drug candidate for ulcerative colitis. The analysts at Truist foresee increased peak sales and have factored in potential sales for psoriasis and ulcerative colitis, reflecting confidence in the drug’s market potential. Meanwhile, H.C. Wainwright reiterated its Buy rating and $54 target, citing compelling clinical data for icotrokinra, Protagonist’s oral psoriasis therapy, which showed promising results at the American Academy of Dermatology Annual Meeting.
BTIG also maintained a Buy rating with a $73 target, driven by anticipated volume growth and new model launches in the coming years. JMP analysts reaffirmed their Market Outperform rating with a $61 price target, emphasizing icotrokinra’s competitive efficacy demonstrated in recent trials. The positive outcomes have led to Johnson & Johnson’s decision to initiate a Phase 3 trial comparing icotrokinra with Stelara.
Additionally, H.C. Wainwright highlighted positive results from the VERIFY trial for rusfertide, showing significant clinical response in polycythemia vera patients. The trial outcomes suggest rusfertide’s potential to reduce the need for phlebotomy, a common procedure for these patients. These developments collectively underscore the optimism of analysts regarding Protagonist Therapeutics’ growth prospects and the potential success of its clinical programs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.