Truist Securities initiated protection on Protagonist Therapeutics Inc PTGX, citing its first-in-class lead asset with encouraging Section 2 information in a uncommon type of blood most cancers and a multi-billion greenback alternative.
Protagonist Therapeutics’ lead belongings, rusfertide and JNJ-2113, have proven promising medical outcomes throughout numerous trials, resulting in partnerships with Takeda Pharmaceutical Co Ltd TAK and Johnson & Johnson JNJ.
Truist fashions peak finish person unadjusted gross sales of $2.8 billion vs. the consensus of $2 billion to rusfertide, that are mirrored in ~$660 million adjusted peak revenues to Protagonist Therapeutics (profit-share in US + royalties ex-US).
The analyst has initiated with a Purchase ranking and a worth goal of $60. Speaking about JNJ-2113, an oral IL-23, is a well-established pathway with 4 FDA-approved inhibitors for numerous situations.
The analyst emphasizes that JNJ-2113 stands out as the one orally administered IL-23 inhibitor, providing a major benefit over others within the area with improved dosing and administration.
Section 2 trial information for psoriasis show improved efficacy in comparison with different oral therapies and IL-23 inhibitors like Johnson & Johnson’s Tremfya and Stelara, although cross-trial comparisons have limitations.
Truist highlights a major unmet want in Irritation & Immunology (I&I), significantly for an oral IL-23 therapy that might broaden market alternatives and doubtlessly result in switching from different oral therapies with completely different mechanisms of motion. Truist additionally sees potential for JNJ-2113 to be efficient in further indications.
The analyst fashions round $4 billion in peak unadjusted end-user gross sales for JNJ-2113 in psoriasis, mirrored as ~$300 million in peak adjusted royalties to the corporate vs. the consensus of $320 million.
The analyst additionally sees a possible peak alternative of $2.7 billion in ulcerative colitis however awaits information from the trial anticipated within the fourth quarter of 2024 earlier than assigning any worth.
Worth Motion: PTGX inventory is up 0.83% at $44.96 on the final examine on Tuesday.
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