Protagonist Therapeutics Announces Closing of Worldwide Rusfertide License and Collaboration Agreement with Takeda

Rhea-AI Summary

Protagonist Therapeutics, Inc. announces the closing of a collaboration and license agreement with Takeda for rusfertide, with a $300 million upfront payment expected in Q2 2024.

Pharmaceutical Market Analyst

The closure of a worldwide collaboration and license agreement between Protagonist Therapeutics and Takeda is a significant development in the pharmaceutical industry. This partnership is indicative of a strategic move by Takeda to bolster its pipeline with rusfertide, which may have shown promise in clinical applications. The upfront payment of $300 million is a substantial investment, reflecting the potential value Takeda sees in this asset.

From an investment perspective, this influx of capital to Protagonist Therapeutics could be allocated towards further R&D, reducing the financial risk and potentially accelerating the development of rusfertide. For Takeda, the deal may offer a competitive edge in specific therapeutic areas, assuming rusfertide's successful development and market approval. However, the success of such collaborations is not guaranteed and the long-term benefits will hinge on clinical outcomes and market acceptance of rusfertide.

Healthcare Legal Expert

The completion of the HSR Antitrust review is a procedural yet important aspect of the agreement, ensuring that the collaboration does not pose any anti-competitive concerns. This legal clearance is a routine step for transactions of this scale, yet it is essential to avoid future litigation or regulatory penalties that could adversely affect both companies.

Furthermore, the structure of the deal, with a significant upfront payment, could be subject to intense scrutiny by shareholders and regulators to ensure that the valuation of rusfertide is justified. Such large transactions can impact stock performance, as they reflect investor confidence and the strategic direction of the involved companies.

Financial Analyst

Receiving a $300 million payment is a considerable financial event for Protagonist Therapeutics. It is likely to have a positive impact on the company's cash reserves, potentially improving its balance sheet substantially. For Takeda, the disbursement of such a large sum represents a significant bet on rusfertide's future. The deal may affect Takeda's short-term financials, but if rusfertide becomes a successful product, it could lead to long-term revenue streams.

Investors should monitor Protagonist's subsequent financial statements for how the payment is utilized and any guidance on future earnings. It's also vital to consider that the biopharmaceutical sector is high-risk and the success of drug development is uncertain. Thus, while the deal is promising, it carries inherent risks associated with the drug development lifecycle.

NEWARK, CA / ACCESSWIRE / March 18, 2024 / Protagonist Therapeutics, Inc. ("Protagonist" or the "Company") today announces the closing of the worldwide collaboration and license agreement for rusfertide with Takeda, a leading values-based, R&D-driven biopharmaceutical company, disclosed on January 31, 2024. Closing of the transaction was contingent on completion of review under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 in the United States. Protagonist will receive the $300 million upfront payment associated with the transaction in the second quarter of 2024.

About Protagonist

Protagonist 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. Rusfertide will be co-developed and co-commercialized with Takeda pursuant to a worldwide collaboration and license agreement with Takeda entered into in January 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.

Investor Relations Contact

Corey Davis, Ph.D.
LifeSci Advisors
+1 212 915 2577
cdavis@lifesciadvisors.com

Media Contact

Virginia Amann, Founder/CEO
ENTENTE Network of Companies
virginiaamann@ententeinc.com

SOURCE: Protagonist Therapeutics, Inc.

View the original press release on accesswire.com

What collaboration and license agreement did Protagonist Therapeutics, Inc. close recently?

Protagonist Therapeutics, Inc. closed a worldwide collaboration and license agreement for rusfertide with Takeda.

Who is the collaboration partner of Protagonist Therapeutics, Inc. for rusfertide?

Takeda is the collaboration partner of Protagonist Therapeutics, Inc. for rusfertide.

What is the upfront payment associated with the collaboration and license agreement?

Protagonist Therapeutics, Inc. will receive a $300 million upfront payment.

When is the $300 million upfront payment expected to be received by Protagonist Therapeutics, Inc.?

The $300 million upfront payment is expected to be received in the second quarter of 2024.

Under what act was the completion of the transaction contingent?

The completion of the transaction was contingent on review under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 in the United States.