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On Monday, JPMorgan analyst Brian Cheng increased the price target for Protagonist Therapeutics (NASDAQ:PTGX) shares from $53.00 to $57.00, while maintaining an Overweight rating on the stock. According to InvestingPro data, analyst targets for PTGX range from $38 to $68, with the company maintaining an EXCELLENT financial health score. The stock, currently trading at $38.97, has shown a 16.92% return over the past year despite its characteristic volatility. This adjustment follows the release of positive Phase 3 VERIFY trial data for rusfertide in the treatment of polycythemia vera (PV), which Cheng described as robust and clinically meaningful. The company’s strong financial position is evident in its balance sheet, with InvestingPro analysis showing more cash than debt and a remarkable 624% revenue growth in the last twelve months.
The trial results showed a higher than anticipated response rate, with 77% of patients responding to the treatment compared to the 65%-75% that JPMorgan had estimated. The placebo response rate was also higher than expected at 33%, surpassing the 15%-20% assumption. Protagonist Therapeutics’ management attributed this to a more diverse patient population in the global trial compared to the Phase 2 REVIVE trial.
The study also highlighted that 73% of patients treated with rusfertide were able to completely stop using phlebotomies, and there was a significant improvement in symptoms across all patients. Importantly, no safety concerns were raised, particularly with regards to cancer adverse events (AEs).
Cheng noted that the results align with JPMorgan’s projections, falling between their base case and more optimistic scenarios previously outlined. The firm is now looking forward to more detailed data that will be presented at upcoming medical meetings such as ASH and EHA. With a market capitalization of $2.4 billion and a current ratio of 12.48, InvestingPro analysis indicates the company has strong liquidity to support its ongoing clinical programs. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of PTGX’s financial health and growth prospects among 1,400+ top stocks. These details will include baseline characteristics, subset analysis of responses, the extent of symptom improvement, and a more comprehensive adverse event profile.
The successful trial data paves the way for a New Drug Application (NDA) filing in the latter half of the year for the Takeda-partnered program. In addition to these findings, JPMorgan is also anticipating the upcoming Phase 2b UC ANTHEM trial results for another of Protagonist’s treatments, which are expected later this month.
In other recent news, Protagonist Therapeutics has been the focus of multiple analyst updates, primarily due to its drug candidate, rusfertide, which is being developed for the treatment of polycythemia vera (PV). H.C. Wainwright raised its price target for Protagonist Therapeutics from $50.00 to $54.00, maintaining a Buy rating, as they anticipate the Phase 3 results for rusfertide in the VERIFY study. The analyst noted the significant market opportunity for rusfertide, estimating its peak revenue to reach $1-2 billion. Meanwhile, Citizens JMP reiterated its Market Outperform rating with a $58.00 price target, emphasizing the strategic decisions Protagonist faces with its partnership options with Takeda. Truist Securities also maintained a Buy rating with a $60.00 price target, citing positive feedback from key opinion leaders about rusfertide’s potential in addressing unmet medical needs in PV treatment. Additionally, JMP Securities reaffirmed its Market Outperform rating with a $58.00 price target, expressing optimism about rusfertide’s ability to address issues like iron dysregulation in PV patients. The anticipation of the VERIFY study’s results, expected next month, is a critical milestone for Protagonist Therapeutics, as it could significantly impact the company’s future strategies and market valuation.
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