Analyst Boosts Protagonist Therapeutics Price Target, Says Psoriasis Data Impressive

JMP Securities has increased the price target for Protagonist Therapeutics Inc PTGX from $28 to $35, with a Market Outperform rating.

Protagonist Therapeutics announced topline results from the Phase 2b FRONTIER 1 trial of the oral interleukin-23 receptor (IL-23R) antagonist JNJ-2113 (formerly PN-235) in adult patients with moderate-to-severe plaque psoriasis presented at World Congress of Dermatology in Singapore. 

JMP analyst says the detailed Phase 2b data support JNJ-2113 as the most efficacious oral agent in development for psoriasis.

It notes that JNJ-2113 led to PASI response rates better than any other oral agent approved or in development for psoriasis with a clean safety profile.

The shares fell as the data fell short of injectables. But the analyst says the full data shows ‘2113 as the only oral IL-23R antagonist in development and has a unique position backed by Phase 2 data better than any oral out there.

The shares have not fully recovered, attributed to:

• The best ‘2113 responses were observed with its twice-daily dose.
• Data from Ventyx Biosciences Inc’s VTYX oral TYK2 inhibitor VTX958 are coming in 4Q23, and some investors think this candidate could take the pole position as the best oral in development. 

JMP writes that given the size of the psoriasis market and lack of good oral options, multiple agents can potentially have commercial success.

Price Action: PTGX shares are up 0.98% at $23.62 on the last check Thursday.