On Tuesday, JPMorgan (NYSE:JPM) adjusted its price target on Protagonist Therapeutics (NASDAQ:PTGX) shares, increasing it to $39.00 from the previous target of $37.00. The firm continues to hold an Overweight rating on the stock. The adjustment follows a recent discussion with the CEO of Protagonist, which shed light on the company's ongoing partnership with Johnson & Johnson on an oral IL-23R peptide program, known as JNJ-2113.
The studies under this program are reportedly enrolling participants at a quicker pace than initially anticipated, which the firm believes underscores the product's potential. The primary completion date for the Phase 2b ANTHEM-UC trial is now expected in the fourth quarter of 2024, moved up from May 2025. Additionally, the primary completion for the ICONIC-ADVANCE-2 head-to-head trial against deucravacitinib has been advanced to February 2025 from April 2025.
Protagonist's CEO expressed confidence in JNJ-2113's prospects, particularly for treating ulcerative colitis (UC), suggesting it could become the best oral agent for the condition. Preclinical data indicated a therapeutic window for inflammatory bowel disease (IBD) that was favorable, with efficacious doses significantly lower than those used in skin inflammation models. The IBD program may rapidly progress to a Phase 2b/3 trial in Crohn's disease if the ANTHEM trial yields positive results.
The company's financial projections include risk-adjusted peak royalty revenues of approximately $600 million by 2037, which could be conservative compared to currently approved agents. Protagonist also has other promising initiatives in the pipeline, with a nomination for a new oral IL-17 program expected by the end of the year, and the unveiling of a new oral heme program slated for the third quarter.
JPMorgan anticipates increased investor attention as Protagonist approaches significant milestones and potential royalty streams from JNJ-2113 and rusfertide. The firm also recognizes potential upside from the company's early-stage pipeline, which includes treatments targeting IL-17 and heme. Adjustments in the firm's model reflect changes in the timing of potential milestone payments and an increased probability of success (PoS) for the UC program from 30% to 40%.
InvestingPro Insights
Protagonist Therapeutics (NASDAQ:PTGX) shows a promising financial and operational outlook according to the latest data. With a market capitalization of approximately $1.99 billion and a robust revenue growth of over 36,000% in the last twelve months as of Q1 2024, the company's financial health appears strong. The adjusted P/E ratio stands at 12.28, suggesting that the stock may be reasonably valued relative to its earnings.
InvestingPro Tips highlight that Protagonist holds more cash than debt, indicating a solid balance sheet, and analysts expect net income to grow this year. Additionally, with significant returns over the past week and trading near its 52-week high, the company's stock price reflects investor confidence. Investors can find more insights and tips on Protagonist Therapeutics by visiting https://www.investing.com/pro/PTGX, and with 12 more InvestingPro Tips available, there's a wealth of information to help guide investment decisions.
To further explore these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This could be an opportune time for investors to consider Protagonist Therapeutics as it approaches its next earnings date on August 1, 2024, and continues to make strides in its clinical programs and financial performance.
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