Protagonist Therapeutics (NASDAQ: PTGX) stock surged 46% on Monday after Truist Securities raised its price target from $60.00 to $76.00, maintaining a Buy rating. The upgrade followed promising Phase 2b trial results for rusfertide, a drug candidate co-developed with Johnson & Johnson (NYSE: JNJ) to treat ulcerative colitis (UC).
The trial data showed rusfertide achieving a 64% clinical response rate and a 30% clinical remission rate in UC patients, beating analyst expectations. Based on these results, Truist updated its financial outlook, lifting its peak sales estimate for rusfertide in polycythemia vera (PV) to $745 million from an earlier estimate of $660 million.
The firm also started factoring in sales projections for rusfertide in psoriasis (PsO) and assigned value to its potential in UC, estimating peak adjusted royalties at $470 million—a notable increase from the prior $300 million estimate.
Truist highlighted rusfertide’s consistent efficacy and the convenience of its once-daily oral dosing as key strengths. The firm believes these factors could position the drug as a preferred treatment option within its therapeutic class.
Analysts also anticipate that Johnson & Johnson will move forward with rusfertide for further development in inflammatory bowel disease (IBD) treatment, although no official confirmation has been provided yet.
Meanwhile, H.C. Wainwright reiterated its Buy rating on Protagonist Therapeutics (NASDAQ: PTGX), maintaining a $54.00 price target for the stock.
