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On Wednesday, Protagonist Therapeutics, Inc. (NASDAQ:PTGX) saw its price target increased by BTIG from $41.00 to $51.00, while the firm maintained a Buy rating on the stock. This adjustment comes as Protagonist Therapeutics released a new corporate presentation revealing key updates in their drug development pipeline.
The company announced a shift in the primary completion date for the ANTHEM-UC Phase 2b study of JNJ-2113 in ulcerative colitis to September 2024, a month earlier than the previous guidance of October 2024.
Additionally, Protagonist Therapeutics has signaled its entry into the obesity treatment market, with specific targets to be disclosed later, lead optimization slated for the second half of 2024, and the nomination of a development candidate anticipated in the first half of 2025.
JNJ-2113, also known as PN-235, is an oral IL-23R inhibitor that is believed to have gastrointestinal (GI)-biased pharmacokinetics, which could be particularly beneficial in the treatment of inflammatory bowel disease (IBD). The company retains significant economic interest in the drug, with expectations that positive results from the ANTHEM-UC trial could quickly lead to pivotal development in both ulcerative colitis and Crohn's disease.
The analyst noted the potential for significant developments and earnings for Protagonist Therapeutics through their partnerships. The firm's updated financial model takes into account an anticipated $715 million in payments from Johnson & Johnson and Takeda Pharmaceutical Company (NYSE:TAK) Limited over the next two years.
This includes assuming Protagonist Therapeutics will opt out of the co-promotion of rusfertide in the U.S. in exchange for a $400 million payment from Takeda, along with 14-29% worldwide royalties and up to $975 million in additional milestone payments from the same company.
In other recent news, Protagonist Therapeutics has been making significant strides in its various programs. The company's REVIVE Phase 2 study of rusfertide, a treatment for polycythemia vera (PV), has demonstrated sustained control of hematocrit levels and long-term tolerability in patients, according to data presented at the European Hematology Association congress. H.C. Wainwright has reaffirmed a Buy rating for Protagonist Therapeutics, highlighting these positive results.
In addition, the company's partnership with Johnson & Johnson on the JNJ-2113 program, an oral IL-23R peptide program, is reportedly enrolling participants faster than initially expected. This has led to JPMorgan raising its price target for Protagonist Therapeutics from $37.00 to $39.00, while maintaining an Overweight rating on the stock. The completion dates for two key trials under this program have also been moved up.
These are all recent developments that investors should be aware of. The company's CEO has expressed confidence in JNJ-2113, especially for treating ulcerative colitis, and anticipates risk-adjusted peak royalty revenues of approximately $600 million by 2037. Protagonist Therapeutics also has other promising initiatives in the pipeline, including a new oral IL-17 program and a new oral heme program.
InvestingPro Insights
Following the positive outlook from BTIG, Protagonist Therapeutics (NASDAQ:PTGX) also shows encouraging signs from an investment perspective, according to InvestingPro data. With a market capitalization of $2.24 billion and a P/E ratio that has adjusted to 13.84 in the last twelve months as of Q1 2024, the company presents a potentially attractive valuation. The significant revenue growth of over 36,565% in the same period is a testament to the company’s rapid expansion and operational success.
InvestingPro Tips highlight that Protagonist Therapeutics holds more cash than debt on its balance sheet and analysts expect both net income and sales to grow in the current year. These factors could indicate a robust financial position and promising future performance, aligning with the strategic developments mentioned in their corporate presentation. Additionally, with the company's stock trading near its 52-week high and a price appreciation of 95.35% over the last year, investors have witnessed strong returns.
For those considering an investment in Protagonist Therapeutics, there are 13 additional InvestingPro Tips available, which could provide further insights into making an informed decision. Interested investors can also take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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