Protagonist Thera jumps on news of milestone payment

Shares of US biotech Protagonist Therapeutics (Nasdaq: PTGX) gained more than 4% to $6.96 by mid-morning, after it revealed a milestone payment under its 2017 collaboration with Johnson & Johnson (NYSE: JNJ) unit Janssen Biotech, for co-development activities with affiliate Janssen Research & Development, and commercialization of oral, gut-restricted interleukin (IL)+-23 receptor antagonist PTG-200 (JNJ-67864238) and second-generation peptides for all indications including inflammatory bowel disease (IBD).

The successful nomination of a second-generation development candidate triggers a $5 million milestone payment to Protagonist under the deal that could earning the company nearly $1 billion in total.

"We are highly encouraged by the progress with Janssen in the successful application of our technology platform for the discovery and development of gut-restricted IL-23 receptor antagonist peptides as oral targeted therapy for IBD," commented Dinesh Patel, Protagonist president and chief executive, adding: "Our first product candidate PTG-200 remains on track for Phase II results in Crohn's disease expected in 2021. This recent milestone demonstrates both the utility of the platform and our commitment to the overall strategic objective of bringing new oral medicines to patients with IBD."