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On Tuesday, H.C. Wainwright maintained a Buy rating and a $50.00 stock price target for Protagonist Therapeutics (NASDAQ: NASDAQ:PTGX), following the release of positive study results.
Protagonist's drug candidate, icotrokinra, demonstrated success in meeting its primary endpoints during the ICONIC Phase 3 program, which includes the ICONIC-LEAD and ICONIC-TOTAL studies. These studies evaluated icotrokinra for the treatment of moderate-to-severe plaque psoriasis (PsO) and in special areas of psoriasis.
The favorable outcomes prompted a $165 million milestone payment from Janssen, as stipulated by the revised partnership agreement between the two companies. This agreement accelerates payments of $35 million and $15 million, which were initially scheduled for the acceptance of a New Drug Application (NDA) in psoriasis and the initiation of a Phase 3 study in a second indication, respectively.
The successful trial results not only trigger these milestone payments but also pave the way for Protagonist to potentially receive up to $630 million in additional development and commercial milestones. Moreover, Protagonist stands to earn royalties ranging from 6-10% on global sales of icotrokinra.
H.C. Wainwright's analyst highlighted the long-term value of icotrokinra, projecting it to become a multi-billion dollar franchise. The analyst's reiterated Buy rating and price target reflect confidence in Protagonist's commercial prospects and the anticipated financial benefits stemming from the drug's development and potential market success.
In other recent news, Protagonist Therapeutics has been the subject of numerous analyst reports. TD Cowen, Truist Securities, and others have all maintained a Buy rating on the company. The ratings come after positive discussions with Protagonist's management about their Phase III trial results for a Psoriasis treatment and the potential of their drug 2113.
Moreover, the company's collaboration with Takeda on the Rusfertide program for polycythemia vera treatment is showing progress.
Another noteworthy development is the recent board reshuffle at Protagonist Therapeutics with Daniel N. Swisher Jr. stepping down and Sarah A. O'Dowd filling the vacancy on the Audit Committee. The company has also welcomed Newman Yeilding, M.D., as its Chief Scientific Advisor.
Protagonist Therapeutics is also making strides in its drug development pipeline. The completion date for the company's ANTHEM-UC Phase 2b study of JNJ-2113, a treatment for ulcerative colitis, has been moved to September 2024. Furthermore, the company has announced its entry into the obesity treatment market. These are the latest developments for Protagonist Therapeutics.
InvestingPro Insights
The positive study results and milestone payments for Protagonist Therapeutics (NASDAQ: PTGX) are reflected in the company's strong financial performance and market position. According to InvestingPro data, PTGX has shown impressive growth with a 140.27% price total return over the past year and a 76.14% return year-to-date. This aligns with the InvestingPro Tip that the company has had a "High return over the last year."
The company's financial health appears robust, with InvestingPro data showing a gross profit margin of 100% and an operating income margin of 46.05% for the last twelve months as of Q3 2024. This strong profitability is consistent with the InvestingPro Tip that PTGX has been "Profitable over the last twelve months."
Looking ahead, another InvestingPro Tip suggests that "Analysts anticipate sales growth in the current year," which could be driven by the success of icotrokinra and the potential for additional milestone payments and royalties. For investors seeking more insights, InvestingPro offers 11 additional tips for PTGX, providing a comprehensive analysis of the company's prospects.
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