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Protagonist Reports First Quarter 2024 Financial Results and Provides Corporate Update Entered into a worldwide license and collaboration agreement for rusfertide with Takeda; Cash runway extended through Q4 2027 1 Enrol

Key Takeaway: Protagonist Therapeutics reported its first quarter financial results for 2024, highlighting a successful partnership with Takeda for the development of rusfertide. The company's strong financial position is reinforced with a cash runway extended through Q4 2027, aided by a $300 million upfront payment from Takeda. Additionally, both Phase 3 trials of JNJ-2113 for psoriasis have completed enrollment, and the company anticipates announcing a new development candidate from its oral IL-17 program by the end of 2024. Recent positive outcomes from Phase 2 studies bolster expectations around JNJ-2113 continuing as a leading treatment in immunology.

Market Sentiment Analysis

POSITIVE FACTORS

  • Entered into a significant collaboration agreement for rusfertide with Takeda.
  • Extension of cash runway through Q4 2027 enhances financial stability.
  • Positive results from the Phase 2 studies of JNJ-2113 suggest strong pipeline potential.
  • Expectations to nominate a new development candidate from the oral IL-17 program by year-end.

Full Press Release Details

Protagonist Reports First Quarter 2024 Financial
Results and Provides Corporate Update
Entered into a worldwide license and
collaboration agreement for rusfertide with Takeda; Cash runway extended through Q4 20271
Enrollment in both Phase 3 ICONIC LEAD and ICONIC
TOTAL trials of JNJ-2113 in patients with moderate to severe psoriasis is now complete
from the Phase 2b FRONTIER 2, a 52-week long term extension study of JNJ-2113 presented at the American
Academy of Dermatology 2024 Annual Meeting in March
Expect to nominate a development candidate from
oral IL-17 program by end of 2024
Two articles published in the New England Journal
of Medicine reporting results from the Phase 2b FRONTIER 1 study with JNJ-2113 and the Phase 2 REVIVE study with rusfertide
Calif., May 7, 2024 - Protagonist Therapeutics (Nasdaq: PTGX) ("Protagonist" or
"the Company") today reported financial results for the first quarter ended March 31, 2024, and provided a corporate
first quarter of 2024 was an extremely busy and productive time for Protagonist," said Dinesh V. Patel, Ph.D., the Company's
President and CEO. "We announced a transformational partnership with Takeda to develop and commercialize rusfertide that allows
us to reinvest in our core competency in peptide therapeutics and expand our efforts to create a new pipeline of potential blockbusters
and highly differentiated development candidates. We expect to nominate
an oral IL-17 antagonist development candidate this year from our
internal discovery efforts."
Dr. Patel continued: "We are
very pleased with our continued collaboration with Johnson & Johnson and their efforts to position JNJ-2113 as a centerpiece
of its immunology franchise with completion of the two Phase 3 trials in psoriasis expected by the end of the year. The Phase 2 results
recently featured in New England Journal of Medicine and the 52-week long-term extension data presented at the American Academy of Dermatology
conference show that JNJ-2113, the first and only targeted oral IL-23 receptor antagonist (IL23Ri) peptide, maintained skin clearance
in moderate-to-severe plaque psoriasis patients through one year and has the potential to be a best-in-class oral agent for psoriasis.
We look forward to its continued and expanded assessment across the spectrum of other IL-23-mediated diseases, including the results from
the Phase 2b ANTHEM study in ulcerative colitis."
1 Based on Cash, Cash Equivalents and Marketable Securities
as of March 31, 2024, and including the $300m upfront payment received from the worldwide collaboration agreement with Takeda Pharmaceuticals
in April 2024, but excluding all future milestones expected with respect to JNJ-2113 and rusfertide.
Quarter 2023 Recent Developments and Upcoming Milestones
Subcutaneous Injectable Hepcidin Mimetic for Polycythemia Vera (PV) and Other Blood
Oral IL-23 Receptor Antagonist
ICONIC-LEAD (NCT06095115) and ICONIC-TOTAL (NCT06095102)
ICONIC-ADVANCE 1 (NCT06143878) and ICONIC-ADVANCE 2 (NCT06220604)
ANTHEM (NCT06049017)
First Quarter 2024 Financial Results
Three Months Ended
March 31,
(in thousands, except per share amounts) 2024 2023
License and collaboration revenue $ 254,953 $ -
Research and development expense $ 33,734 $ 27,416
General and administrative expense $ 14,910 $ 8,605
Net income (loss) $ 207,340 $ (33,725 )
Basic earnings (loss) per share $ 3.41 $ (0.67 )
Diluted earnings (loss) per share $ 3.26 $ (0.67 )
Therapeutics is a biopharmaceutical company with peptide-based new chemical entities (NCEs) rusfertide and JNJ-2113 (formerly PN-235)
in advanced stages of clinical development, both derived from the Company's proprietary technology platform. Protagonist and JNJ scientists
jointly discovered PN-235 (now known as JNJ-2113) as part of Protagonist's Interleukin-23 receptor (IL-23R) collaboration with JNJ and
followed it through IND-enabling pre-clinical and Phase 1 studies, with JNJ assuming responsibility for further clinical development.
Rusfertide, a mimetic of the natural hormone hepcidin, is the Company's lead drug candidate currently in a global Phase 3 development
program. The randomized portion of the Phase 2 REVIVE study was unblinded, showing positive results
and is now complete, with an open-label extension underway. The global Phase 3 VERIFY study of rusfertide in polycythemia vera is ongoing.
co-developed and co-commercialized with Takeda pursuant to a worldwide collaboration and license agreement with Takeda entered into in
January 2024 and became effective in March 2024. More information on Protagonist, its
pipeline drug candidates and clinical studies can be found on the Company's website at www.protagonist-inc.com.
on Forward-Looking Statements
This press release contains forward-looking
statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements
include statements regarding the potential benefits of JNJ-2113 and rusfertide, the timing of JNJ-2113 and rusfertide clinical trials,
and timing of developments in our discovery programs. In some cases, you can identify these statements by forward-looking words such as
"anticipate," "believe," "may," "will," "expect," or the negative or plural of these
words or similar expressions. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties
that could cause actual results and events to differ materially from those anticipated, including, but not limited to, our ability to
develop and commercialize our product candidates, our ability to earn milestone payments under our collaboration agreements with Janssen
and Takeda, our ability to use and expand our programs to build a pipeline of product candidates, our ability to obtain and maintain regulatory
approval of our product candidates, our ability to operate in a competitive industry and compete successfully against competitors that
have greater resources than we do, and our ability to obtain and adequately protect intellectual property rights for our product candidates.
Additional information concerning these and other risk factors affecting our business can be found in our periodic filings with the Securities
and Exchange Commission, including under the heading "Risk Factors" contained in our most recently filed periodic reports on
Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements are not guarantees of
future performance, and our actual results of operations, financial condition and liquidity, and the development of the industry in which
we operate, may differ materially from the forward-looking statements contained in this press release. Any forward-looking statements
that we make in this press release speak only as of the date of this press release. We assume no obligation to update our forward-looking
statements, whether as a result of new information, future events or otherwise, after the date of this press release.
PROTAGONIST THERAPEUTICS, INC.
Condensed Consolidated Statements of Operations
(Amounts in thousands except share and per share
Three Months Ended
March 31,
2024 2023
License and collaboration revenue $ 254,953 $ -
Operating expenses:
Research and development (1) 33,734 27,416
General and administrative (1) 14,910 8,605
Total operating expenses 48,644 36,021
Income (loss) from operations 206,309 (36,021 )
Interest income 4,376 2,491
Other expense, net (19 ) (195 )
Income (loss) before income tax expense 210,666 (33,725 )
Income tax expense (3,326 ) -
Net income (loss) $ 207,340 $ (33,725 )
Net income (loss) per share, basic $ 3.41 $ (0.67 )
Net income (loss) per share, diluted $ 3.26 $ (0.67 )
Weighted-average shares used to compute net income (loss) per share, basic 60,855,689 50,573,650
Weighted-average shares used to compute net income (loss) per share, diluted 63,595,328 50,573,650
includes non-cash stock-based compensation expense.
PROTAGONIST THERAPEUTICS, INC.
Stock-based Compensation
Three Months Ended
March 31,
2024 2023
Research and development $ 5,288 $ 4,582
General and administrative 4,064 3,002
Total stock-based compensation expense $ 9,352 $ 7,584
PROTAGONIST THERAPEUTICS, INC.
Selected Consolidated Balance Sheet Data
March 31, December 31,
2024 2023
Cash, cash equivalents and marketable securities $ 322,635 $ 341,617
Receivable from collaboration partner 300,043 10,000
Working capital 587,643 334,303
Total assets 629,276 357,951
Accumulated deficit (408,370 ) (615,710 )
Total stockholders' equity 560,444 336,677

Frequently Asked Questions

What recent collaboration has Protagonist entered into?

Protagonist has a worldwide license and collaboration agreement for rusfertide with Takeda.

What is the status of JNJ-2113 trials?

Enrollment in the Phase 3 ICONIC LEAD and ICONIC TOTAL trials for JNJ-2113 is complete.

When does Protagonist expect to nominate a new candidate?

Protagonist anticipates nominating a development candidate from its oral IL-17 program by the end of 2024.

What were Protagonist's Q1 2024 financial results?

Protagonist reported a net income of $207.34 million for Q1 2024.

What is rusfertide designed to treat?

Rusfertide is a mimetic of hepcidin and is currently in development for polycythemia vera.

Last updated: May 7, 2024