Shares of PTGX stock briefly broke out Friday after Protagonist Therapeutics said it plans to soon present new test results for its highly anticipated Johnson & Johnson-partnered psoriasis drug.
The psoriasis market could be worth a whopping $25.3 billion by 2030, up from $13.2 billion in 2020, Protagonist said in an overview released late Thursday alongside the company's first-quarter earnings report. Protagonist plans to unveil early-stage and preclinical test results for the drug called JNJ-2113 next Friday during the International Societies for Investigative Dermatology meeting.
Further, Protagonist expects to release Phase 2 results in the third quarter.
On today's stock market, PTGX stock surged 5.1% to close at 24.81. Shares briefly topped a buy point at 25.79 out of a consolidation, according to MarketSmith.com.
PTGX Stock: Multiple Readouts In 2023
Protagonist expects to have "critical data readouts in 2023" for JNJ-2113. The drug is the first oral medicine in development to block interleukin-23, a cytokine with ties to autoimmune diseases. Johnson & Johnson already sells Stelara and Tremfya, two injectable drugs that block interleukin-23.
There are other oral medications for psoriasis. But they aren't as effective as injectable biologics that block interleukins 23 and 17, Protagonist says. The company estimates existing oral medicines lead to 30%-70% clearance of psoriasis skin lesions compared with 90% clearance from injectable biologics.
Despite this, the injectable medications aren't gaining traction. Just 25% of psoriasis patients receive injectable biologics, the company estimates. There is "strong interest in oral IL-23 pathway inhibitors to replace biologics," Protagonist said in its overview.
PTGX stock has soared on enthusiasm for its effort in oral psoriasis treatment.
In a study of 255 patients, a statistically significant portion who received Protagonist's drug achieved at least 75% skin clearance by week 16. The companies tested JNJ-2113 against a placebo. The treatment also was well tolerated.
Top 1% Biotech Stock
PTGX stock is highly rated, according to IBD Digital. Shares have a perfect Relative Strength Rating of 99. This puts them in the top 1% of all stocks when it comes to 12-month performance.
Shares also have a strong Composite Rating of 87. This means Protagonist stock outranks 87% of stocks when it comes to fundamental and technical measures. Protagonist is not yet a commercial company, however. In the first quarter, it had no sales and a per-share loss of 67 cents.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
