Barclays Initiates Protagonist At Overweight, Sees Upside Value In Proprietary Peptide Platform
Protagonist Therapeutics Inc’s (NASDAQ: PTGX) lead asset PTG-100 in IBD has “significant end-market opportunity” and there is “upside value” in the company’s proprietary peptide platform, validated by four development-stage assets to date, Barclays’ Douglas D. Tsao said in a report. He initiated coverage of the company with an Overweight rating and a price target of $18.
Analyst Tsao estimated over $1.1 billion in revenues for PTG-100 in ulcerative colitis. He added that there was potential for expanded use into Crohn’s disease and pediatric IBD. Protagonist is on track to submitting its IND for PTG-100 in Q3 this year and intends to commence the Phase 2b trial in Q4, the readout of which is expected in the first half of 2018.
Protagonist’s platform has produced additional development-stage assets, Tsao noted. PTG-200 is being developed as an oral treatment for CD targeting the IL-23 receptor, “unlike other drugs focused on that target ligand.” The development took six to nine fewer months than PTG-100 based on platform learnings.
“We see potential for fixed-dose therapy with PTG-100, but estimate $660M in revenues for PTG-200 in CD alone. PTG-300 is a novel mimetic hepcidin peptide intended to treat orphan iron-overload disorders which occur in up to ~0.5% of adults,” the analyst wrote. He added that Protagonist’s platform was protected by IP till 2034.
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Latest Ratings for PTGX
|Sep 2016||Barclays||Initiates Coverage on||Overweight|
|Sep 2016||Leerink Swann||Initiates Coverage on||Outperform|
|Sep 2016||BMO Capital||Initiates Coverage on||Outperform|
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