TD Cowen has reaffirmed its Buy rating on Protagonist Therapeutics (NASDAQ: NASDAQ:PTGX), maintaining the stock's price target at $65.00.
The firm's confidence in the stock remains steady following discussions with Protagonist's management regarding their Phase III trial results for a treatment in Psoriasis (PsO).
The 200mg once-daily dose of their drug 2113 has been highlighted as the optimal choice for addressing the needs of at least 2 million patients.
The company's focus is on Ulcerative Colitis (UC), where investors are keenly interested. According to TD Cowen, Protagonist's drug 2113 is not required to outperform injectable treatments in this space to be successful.
Additionally, the firm noted that Rusfertide, another of Protagonist's products, has the potential to tap into a multi-billion dollar market.
In other recent news, Protagonist Therapeutics has been the focus of several analyst firms. TD Cowen initiated coverage with a Buy rating based on the potential of Protagonist's drug candidates, including rusfertide and JNJ-2113. H.C. Wainwright and Truist Securities have also given the company a Buy rating. The company's collaboration with Takeda on the rusfertide program for polycythemia vera treatment is advancing, potentially bringing significant financial benefits.
Rusfertide is seen as having a market potential of over $3 billion, with Protagonist Therapeutics poised to claim upwards of $1 billion of that market. JNJ-2113, an oral IL-23 inhibitor, is targeted at more than 5 million patients with psoriasis and ulcerative colitis who are in need of an oral medication.
The company's board has seen changes recently, with Daniel N. Swisher Jr. stepping down and Sarah A. O'Dowd filling the vacancy left on the Audit Committee. Protagonist Therapeutics has also appointed Newman Yeilding, M.D., as its Chief Scientific Advisor. In the pipeline, the completion date for the company's ANTHEM-UC Phase 2b study of JNJ-2113 has been moved to September 2024.
InvestingPro Insights
Protagonist Therapeutics' (NASDAQ: PTGX) strong market position and growth potential, as highlighted by TD Cowen, are further supported by recent financial data and analyst insights from InvestingPro. The company's market capitalization stands at $2.66 billion, reflecting investor confidence in its pipeline and market potential.
InvestingPro data reveals that Protagonist has been profitable over the last twelve months, with a P/E ratio of 15.91, suggesting a reasonable valuation relative to its earnings. The company's revenue for the last twelve months as of Q2 2024 was $319.12 million, with an impressive gross profit margin of 100% and an operating income margin of 47.71%, indicating strong financial performance.
Two key InvestingPro Tips align with TD Cowen's positive outlook:
1. Analysts anticipate sales growth in the current year, which could be driven by the potential success of drug 2113 in Psoriasis and Ulcerative Colitis treatments.
2. The company holds more cash than debt on its balance sheet, providing financial flexibility to fund its ongoing research and development efforts.
These insights suggest that Protagonist Therapeutics is well-positioned to capitalize on its innovative treatments and potentially capture significant market share in the pharmaceutical industry. For investors seeking a deeper understanding of Protagonist's potential, InvestingPro offers 12 additional tips that could provide valuable context for investment decisions.
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