Barclays Initiates Protagonist At Overweight, Sees Upside Value In Proprietary Peptide Platform

Protagonist Therapeutics Inc’s 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.

Lead Candidate

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.

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Peptide Platform

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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