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On Monday, Truist Securities adjusted its outlook on Protagonist Therapeutics (NASDAQ:PTGX) shares, raising the price target from $60.00 to $76.00 and maintaining a Buy rating on the stock. The revision follows the announcement of positive Phase 2b ulcerative colitis (UC) trial results for the drug candidate rusfertide, which is being co-developed with Johnson & Johnson.
The new clinical data revealed a 64% clinical response and a 30% clinical remission rate for rusfertide, surpassing the optimistic forecasts previously set by the analysts. The encouraging results have led Truist Securities to modify their financial model, increasing the projected peak sales for rusfertide in polycythemia vera (PV) to $745 million, up from the earlier estimate of $660 million. According to InvestingPro, the company holds more cash than debt on its balance sheet and maintains strong liquidity metrics, with a current ratio of 12.48. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into PTGX’s financial health.
Additionally, the firm has now factored in sales projections for rusfertide in psoriasis (PsO) and has begun to assign value to its potential in UC, estimating peak adjusted royalties at $470 million, a significant rise from the previous $300 million estimate. These changes reflect the analyst’s confidence in the drug’s market potential, especially considering its consistent efficacy and the convenience of its once-daily oral dosing.
Truist Securities anticipates that Johnson & Johnson will progress rusfertide into further development for inflammatory bowel disease (IBD) treatment, although official confirmation is pending. The analyst’s statement highlighted the drug’s potential to become a preferred treatment option within its therapeutic class, due to its demonstrated benefits and dosing advantages.
The reiteration of the Buy rating and the increased price target to $76 from $60 by Truist Securities underscores their optimistic view of Protagonist Therapeutics’ growth prospects, particularly in light of the recent positive clinical developments. Trading at a P/E ratio of 12.09, InvestingPro’s Fair Value analysis suggests the stock is currently fairly valued. Discover detailed valuation metrics, growth projections, and expert analysis for over 1,400 US stocks with an InvestingPro subscription.
In other recent news, Protagonist Therapeutics has received positive attention from analysts following the release of significant clinical trial results. H.C. Wainwright maintained its Buy rating with a $54 price target, citing the promising data from the VERIFY trial for rusfertide, a treatment for polycythemia vera. The trial demonstrated a significant clinical response, with 77% of rusfertide-treated patients not requiring phlebotomy, compared to 33% in the placebo group. BTIG also reaffirmed its Buy rating and raised its price target to $73, noting the VERIFY trial’s success and its implications for the New Drug Application process, expected in the fourth quarter of 2025. JMP analysts reiterated a Market Outperform rating and a $61 price target, highlighting icotrokinra’s efficacy in clinical trials, which showed superiority over placebo and other treatments. The analysts anticipate further presentations of the ICONIC ADVANCE data at upcoming medical conferences. Additionally, Protagonist Therapeutics is expected to release Phase 2 data for icotrokinra in ulcerative colitis by the end of March, with plans for a New Drug Application by late 2025. These recent developments reflect growing confidence among analysts in Protagonist Therapeutics’ future prospects.
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