Street View: Protagonist's 'main character' energy draws J&J to potential takeover talks

Protagonist Therapeutics

13/10/2025 15:05

** Johnson & Johnson JNJ.N is in discussions to buy Protagonist Therapeutics PTGX.O, a source familiar with the matter told Reuters on Friday

** Both companies said they do not provide comment on speculations or rumors

** 12 of 13 brokerages rate PTGX "buy" or higher and 1 "hold"; their median PT is $72 - data compiled by LSEG

STRONG PIPELINE, UNDERVALUED PRICE

** RBC Capital Markets says, "If a deal were to occur, we believe it would be consistent with JNJ's M&A commentary ... and be a strong strategic fit with JNJ's continued focus on its fast-growing Immunology and Oncology franchises"

** Wedbush ("outperform" on PTGX, PT: $70) says "main reason behind JNJ's acquisition interest ... is likely PTGX's orally available peptide technology platform that has supported the development of additional candidates"

** BMO ("outperform" on PTGX, PT: $112) says they "think the market is currently under-pricing what Protagonist could be worth," and while JNJ is a natural buyer, other suitors could emerge

** Leerink Partners ("outperform" on PTGX) in a note titled "Main Character Indeed" says Protagonist's pipeline is deep and strategically aligned with J&J

** Says that icotrokinra, which Protagonist is developing with J&J, could be "one of the most impactful immunology drug launches of this decade," and estimates its peak global sales could reach $9.5 billion

 (Reporting by Kamal Choudhury in Bengaluru)

 ((Kamal.Choudhury@thomsonreuters.com;))