Jefferies maintains Buy on Protagonist Therapeutics, $57 target

Finally, Protagonist Therapeutics (NASDAQ:PTGX) has indicated that its financial runway extends beyond the fourth quarter of 2028, providing the company with a stable foundation to continue its clinical programs and potential commercialization efforts. The company's strong financial position is evident in its impressive current ratio of 10.7x and minimal debt-to-equity ratio of 0.02, while maintaining healthy cash flows with a free cash flow yield of 10%.Discover more detailed financial metrics and access the comprehensive Pro Research Report for PTGX through an InvestingPro subscription. The company's strong financial position is evident in its impressive current ratio of 10.7x and minimal debt-to-equity ratio of 0.02, while maintaining healthy cash flows with a free cash flow yield of 10%.Discover more detailed financial metrics and access the comprehensive Pro Research Report for PTGX through an InvestingPro subscription.

The company's lead candidate, rusfertide, which is a hepcidin mimetic, is progressing through a Phase 3 clinical trial for polycythemia vera (PV), with top-line results expected in March 2025. Following these results, a New Drug Application (NDA) submission is planned for the fourth quarter of 2025. Protagonist's collaboration partner, Takeda, has projected peak revenues for rusfertide to be in the range of $1-2 billion.

In addition to the ongoing developments with rusfertide, Protagonist is preparing to host a Key Opinion Leader (KOL) event focused on PV and rusfertide on February 6. This event aims to provide further insights into the treatment and its potential impact on the market.

Protagonist is also advancing icotinib, an oral IL-23 receptor antagonist, through a Phase 2b trial for ulcerative colitis (UC), with readouts anticipated in the first quarter of 2025. The company has expressed optimism regarding icotinib due to previous successes in Phase 2 and Phase 3 trials for psoriasis (PsO).

Furthermore, head-to-head studies comparing icotinib to Sotyktu for PsO are expected to yield top-line results in the second quarter of 2025. Johnson & Johnson has reiterated expectations of over $5 billion in peak sales for icotinib and is guiding towards a PsO NDA submission in the fourth quarter of 2025.

Finally, Protagonist Therapeutics has indicated that its financial runway extends beyond the fourth quarter of 2028, providing the company with a stable foundation to continue its clinical programs and potential commercialization efforts.

In other recent news, Protagonist Therapeutics reported a significant shift in executive roles, with Suneel Gupta, Ph.D., transitioning from Chief Development Officer to Executive Vice President, Clinical Development. The company also received positive ratings from several analyst firms, with Clear Street initiating coverage with a Buy rating and a $63 target price, and BTIG maintaining a Buy rating and increasing the price target from $51 to $67. BMO Capital initiated coverage with an Outperform rating and a $62 price target, while Truist Securities reiterated a Buy rating with a $60 target.

These ratings were influenced by Protagonist's successful drug development efforts, including the success of icotrokinra in its ICONIC Phase 3 program for treating moderate-to-severe plaque psoriasis, triggering a $165 million milestone payment from Janssen. Protagonist Therapeutics also made progress in its collaboration with Takeda on the Rusfertide program for polycythemia vera treatment and announced its entry into the obesity treatment market.

Changes in the company's board were also noted, with Sarah A. O'Dowd filling the vacancy on the Audit Committee following the departure of Daniel N. Swisher Jr., and the appointment of Newman Yeilding, M.D., as Chief Scientific Advisor. These are the latest developments for Protagonist Therapeutics.

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