On Tuesday, BTIG affirmed its Buy rating on shares of Protagonist Therapeutics (NASDAQ:PTGX) with a price target of $67.00, following the presentation of final results from the Open Label Extension (OLE) portion of the Phase 2 trial (REVIVE) for the drug rusfertide, which is being evaluated for the treatment of polycythemia vera (PV). The company's stock has shown remarkable momentum, delivering a 99% return over the past year.
According to InvestingPro analysis, the stock appears undervalued at its current price of $40.50, trading at a modest P/E ratio of 14.5x. The data, presented at the American Society of Hematology (ASH) 2024 conference, showed that rusfertide maintained hematocrit levels below 45% for three or more years in patients who continued on the therapy.
The median duration of rusfertide treatment was approximately 2.5 years. Patients participating in the OLE study, numbering 58, demonstrated a mean phlebotomy rate of less than one per year, aligning with rates observed in earlier parts of the trial. Rusfertide was also noted to normalize serum ferritin levels, which is anticipated to add to the overall treatment benefit.
The final long-term data underscored a well-tolerated profile for rusfertide, with no Grade 4 treatment-emergent adverse events (TEAEs) reported. Most serious adverse events (SAEs) were attributed to the underlying disease rather than the treatment. Moreover, there was no observed correlation between increased exposure to rusfertide and the occurrence of malignancies.
These findings are expected to support the ongoing use and safety profile of rusfertide, as well as reduce the risks associated with the upcoming VERIFY trial results, anticipated in the first quarter of 2025. InvestingPro data reveals that Protagonist maintains excellent financial health with a current ratio of 10.7x and minimal debt, positioning it well for continued clinical development.
The company's strong balance sheet shows more cash than debt, a crucial factor for biotechnology companies advancing their pipeline. If the VERIFY trial results are positive, Protagonist could receive a $25 million milestone payment from Takeda (TAK, Not Rated) upon achieving the primary endpoint.
Furthermore, after the New Drug Application (NDA) filing, Protagonist Therapeutics has the option to exit their profit-sharing agreement. If they choose to do so, they could receive an opt-out payment of $400 million, up to $950 million in additional milestones, including $75 million upon NDA approval, and a tiered royalty ranging from 14% to 29% on worldwide net sales. This arrangement would allow Protagonist Therapeutics to continue capitalizing on rusfertide's market potential in PV.
With analysts maintaining a strong consensus recommendation and setting price targets ranging from $47 to $67, the stock's potential appears promising. Get deeper insights into PTGX's valuation, financial health, and 10+ additional ProTips with a comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Protagonist Therapeutics has been making substantial strides in its drug development efforts. The company's drug candidate, icotrokinra, achieved success in its ICONIC Phase 3 program, meeting primary endpoints for the treatment of moderate-to-severe plaque psoriasis, triggering a $165 million milestone payment from Janssen. Another drug candidate, PN-881, is being positioned for leadership in IL-17 therapies, according to BTIG.
Analyst firms such as H.C. Wainwright, TD Cowen, Truist Securities, and BMO Capital have maintained a Buy rating for Protagonist, reflecting confidence in the company's commercial prospects. Protagonist Therapeutics is also making progress in its collaboration with Takeda on the Rusfertide program for polycythemia vera treatment.
Moreover, the company has announced its entry into the obesity treatment market and has seen changes in its board with Daniel N. Swisher Jr. stepping down and Sarah A. O'Dowd filling the vacancy on the Audit Committee. Protagonist also welcomed Newman Yeilding, M.D., as its Chief Scientific Advisor. These are the latest developments for Protagonist Therapeutics.
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