Protagonist To Go Ahead With Oral Peptide PN-235, Discontinues Phase 1 Candidate

Protagonist Therapeutics Inc PTGX has selected PN-235 (JNJ-77242113) as the final candidate for all clinical studies in multiple indications based on the intervention of the Interleukin-23 (IL-23) pathway, under its collaboration with Janssen Biotech Inc, a unit of Johnson & Johnson JNJ. 

• In addition to the previously announced Phase 2 study of PN-235 in psoriasis, new Phase 2 studies of PN-235 in inflammatory bowel diseases (IBD) will commence in late 2022. 
• The Company will discontinue further development of PN-232 (JNJ-7510586) in favor of PN-235 based on its superior potency and overall pharmacokinetic & pharmacodynamic profile.
• Protagonist will earn a $25 million milestone for initiating the first Phase 2 study of PN-235 in psoriasis in early 2022. 
• It will also be eligible for a $10 million milestone to start the second indication-based Phase 2 study. 
• Protagonist is eligible for up to approximately $900 million in development-related milestone payments, in addition to the $87.5 million already earned. 
• Under the terms of the collaboration, Janssen will conduct all future clinical studies, including these anticipated Phase 2 studies, and will be solely financially responsible for any such studies.
• Related Link: Protagonist Shares Almost Double As FDA Lifts Clinical Hold On Rusfertide Program.
• Price Action: PTGX shares closed at $32.69 on Thursday.