PTGX - Protagonist Therapeutics: Why I Remain On Sidelines Despite Obvious Promise
2024-02-25 11:37:55 ET
Summary
- Protagonist Therapeutics' stock has experienced significant volatility over the past three years, with multiple setbacks and recoveries.
- The company's lead drug candidate, Rusfertide, indicated for polycythemia vera, faced a clinical hold from the FDA but had the hold removed in October 2021 and now looks approvable.
- Protagonist's joint plaque psoriasis candidate, JNJ-2113, showed positive results in a Phase 2 study, leading to a stock price increase.
- Both of Protagonist's lead candidates make a case for a commercial approval - although not for 2 more years at least, and there are risks, and hurdles still to be overcome. 2 Phase 3 studies must still be completed.
- The recently signed deal with Takeda to co-commercialise Rusfertide is a significant boost for Protagonist and has driven its market cap valuation to $1.64bn - I think that is an accurate reflection for its value for now, but may look to buy on any dips.