investigative drug for psoriasis, PN-235/JNJ-2113, was shown, in new study data, to be more efficacious than Bristol-Myers Squibb's Sotyktu, reported BTIG analyst Julian Harrison in a July 3 research note. Continuing weakness in Protagonist's shares translates into a "buying opportunity."
The current share price of the biopharma is about US$27.62 per share. In comparison, BTIG's target price on it is US$41 per share. Based on these prices, the projected return for investors in Protagonist is 45%.
The company remains Buy rated.
Source of New Data
The new data are from the FRONTIER-1 Phase 2b proof of concept trial for JNJ-2113, formerly PN-235, in mild to moderate-severe plaque psoriasis in adults and were presented in an abstract at the recent World Congress of Dermatology annual dermatology meeting, Harrison relayed.
Protagonist has a license and collaboration agreement pertaining to PN-235 with Janssen Biotech, which is advancing the drug.
Superior Efficacy Shown
In FRONTIER-1, JNJ-2113, an oral interleukin-23 receptor (IL-23R) antagonist, demonstrated efficacy, as measured by Psoriasis Area and Severity Index, or PASI, scores, that is better than that shown in the Phase 3 psoriasis study of Sotyktu, an oral tyrosine kinase 2 (TYK2) inhibitor, reported Harrison. A PASI70 score represents a 75–89% improvement from a patient's baseline PASI score, and a PASI90 score, a 90% improvement.
Specifically, at week 16, of the patients in FRONTIER-1 given 100 milligrams (100 mg) of JNJ-2113 once a day, 65% had a PASI75 response, and 78.6%, a PASI90 response.
In comparison, also at week 16, of the patients given Sotyktu 6 mg once a day, 53–58% reached PASI75; 27–36% hit PASI90.
"Overall, we view IL-23R as a much cleaner target than TYK2," deduced Harrison.
'Pipeline in a Product'
Harrison pointed out that JNJ-2113 has the potential to be a pipeline in a product or used as treatment for some medical conditions other than psoriasis if the FRONTIER-1 safety data are positive.
JNJ-2113, wrote Harrison, "could have a range of blockbuster market opportunities in other inflammation and immunology indications with significant IL-23 contribution, including psoriatic arthritis, Crohn's disease, and ulcerative colitis."
Next Developmental Step
Given the strength of the FRONTIER-1 Phase 2b results, it is expected that Janssen will advance JNJ-2113 to Phase 3, Harrison noted.
|Want to be the first to know about interesting Biotechnology / Pharmaceuticals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.||Subscribe|
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
- This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
For additional disclosures, please click here.
Disclosures for BTIG Research, Protagonist Therapeutics Inc., July 3, 2023
Company–Specific Regulatory Disclosures
BTIG LLC expects to receive or intends to seek compensation for investment banking services in the next 3 months from: Protagonist Therapeutics, Inc. (PTGX) BTIG LLC had an investment banking services client relationship during the past 12 months with: Protagonist Therapeutics, Inc. (PTGX) BTIG LLC managed or co-managed a public offering of securities in the past 12 months for: Protagonist Therapeutics, Inc. (PTGX) BTIG LLC has received compensation for investment banking services in the past 12 months from: Protagonist Therapeutics, Inc. (PTGX)
Additional Information Available Upon Request
Research reports produced by BTIG LLC (“BTIG”) are published for and intended to be distributed solely to BTIG institutional and corporate clients. Recipients of BTIG reports will not be considered clients of BTIG solely because they may have received such BTIG report. To the extent recipient accesses BTIG research, whether on a BTIG research website or through a third-party platform, BTIG is able to search, filter, download and review information on the readership of BTIG’s research, including the specific research consumed and the name, company name, email address and, in certain circumstances, the location of the individual who accessed the research (the “Readership Information”).
Recipient consents to BTIG’s receipt of the Readership Information, including receipt of that information from a third party. The research analyst(s) responsible for the preparation of this report receives compensation based upon a variety of factors, including the quality and accuracy of research, internal/client feedback, and overall Firm revenues. BTIG reports are based on public information and BTIG considers the same to be reliable, comprehensive information, but makes no representation or warranty that the reports are accurate or complete. BTIG opinions and information provided in this report are as of the date of the report and may change without notice. An issuer may be classified as “Under Review” or “Research Restricted”. In these cases, investors should consider any previous investment recommendation and/or rating to a subject company/issuer to no longer be current and should not be relied upon nor considered a solicitation. This research report is not an offer to buy or sell or solicitation of an offer to buy or sell any security in any jurisdiction where such an offer or solicitation would be illegal. This research report was not drafted specifically for any particular individual or entity and is not a personal recommendation to participate in any particular trading strategy or transaction. Any recipient of this research report should obtain independent advice specific to their personal circumstances before undertaking any investment activity and must make their own independent evaluation of any securities or financial instruments. Facts, views or opinions presented in this report have not been reviewed by, and may not reflect information known to, employees or other professionals in the “BTIG Group” (BTIG Group includes, but is not limited to, BTIG and its parents, subsidiaries and/ or affiliates).
BTIG Group employees, including Sales Representatives and Traders, may provide oral or written commentary or advice that may be inconsistent with the opinions and/or views expressed in this research report. BTIG Group employees and/or its affiliates not involved in the preparation of this research report may have investments in securities or derivatives of securities of companies mentioned in this report that are inconsistent with the views discussed in this report. Investors in securities products bear certain risks in conjunction with those investments. The value of, and income from, any investments may vary because of changes in interest rates or foreign exchange rates, securities prices or market indexes, operational or financial conditions of companies or other factors within or beyond the companies’ control.
Recipient of the research reports should be aware that investments in securities may pose significant risks due to the inherent uncertainty associated with relying on forecasts of various factors that can affect the earnings, cash flow and overall valuation of a company. Any investment in securities should be undertaken only upon consideration of issues relating to the recipient’s overall investment portfolio and objectives (such as diversification by asset class, industry or company) as well as time horizon and liquidity needs. Further, past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. There may be time limitations on the exercise of options or other rights in any securities transactions. Investing in foreign markets and securities, including ADRs, is subject to additional risks such as currency fluctuation, limited information, political instability, economic risk, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.
Non-U.S. reporting issuers of foreign securities, however, may not make regular or complete public disclosure relating to their financial condition or the securities that they issue. The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability of any damages of any kind relating to such data. The report or any portion hereof may not be reprinted, sold or redistributed without the written consent of BTIG. This report is intended only for use by the recipient. The recipient acknowledges that all research and analysis in this report are the property of BTIG and agrees to limit the use of all publications received from BTIG within his, or her or its, own company or organization. No rights are given for passing on, transmitting, re transmitting or reselling the information provided.
Jurisdiction and Dissemination
BTIG is a U.S. broker-dealer and member of FINRA and SIPC. BTIG Australia Limited ACN 128 554 601, member of ASIC and ASX; BTIG Hong Kong Limited, an Exchange Participant of SEHK and licensed and regulated by the SFC; BTIG Ltd, member of the LSE, authorized and regulated by the FSA; and BTIG Singapore Pte Ltd, registered and licensed with MAS; are all separate but affiliated entities of BTIG. Unless governing law permits otherwise, you must contact a BTIG entity in your home jurisdiction for further information, or if you want to use our services in effecting a transaction. Issued and approved for distribution in the UK and EEA by BTIG Ltd. to eligible counterparties and professional clients only. Issued and distributed in Australia to “wholesale clients” only by BTIG Australia Limited. In Singapore and Hong Kong, further information may be obtained from BTIG Singapore Pte Ltd and BTIG Hong Kong Limited, respectively.