Protagonist (PTGX) Q2 Revenue Falls 26%

Core Insights - Protagonist Therapeutics reported Q2 2025 results, highlighting advancements in its late-stage clinical pipeline despite GAAP revenue falling short of estimates [1][8] - The company achieved a narrower GAAP earnings per share loss of $0.55, better than the anticipated loss of $0.58, while GAAP revenue was $5.5 million, significantly below the estimate of $7.51 million [1][2] Financial Performance - GAAP EPS for Q2 2025 was $(0.55), a 10% decrease year-over-year from $(0.50) in Q2 2024 [2] - GAAP revenue was $5.5 million, a 31% increase from $4.2 million in Q2 2024, but below the estimate of $7.51 million [2] - Research and Development expenses rose to $37.0 million, a 10.4% increase from $33.5 million in Q2 2024 [2] - Cash, cash equivalents, and marketable securities totaled $673.0 million, a 20.3% increase from $559.2 million in the previous year [2] Business Overview - Protagonist Therapeutics focuses on developing peptide-based drugs for hematological and inflammatory diseases, with key programs targeting polycythemia vera and plaque psoriasis [3][4] - The company relies on clinical milestones and strategic partnerships for funding, with significant collaborations with Takeda Pharmaceuticals and Johnson & Johnson [4] Drug Development Progress - The lead drug candidate, rusfertide, showed positive phase 3 data for polycythemia vera, with a New Drug Application expected to be filed by Takeda later in 2025 [5] - Icotrokinra, targeting moderate to severe plaque psoriasis, submitted its first U.S. drug application in July 2025, with positive early data from the ANTHEM study for ulcerative colitis [6] - Preclinical assets like PN-881 and PN-477 are advancing, with promising results in autoimmune diseases and metabolic disorders, respectively [7] Strategic Focus and Future Outlook - The company is transitioning from large upfront payments to a model dependent on product launches, with all operating income coming from license and collaboration revenue [8] - Rising R&D expenses are driven by new preclinical programs, while general and administrative expenses are increasing as the company approaches potential commercialization [9] - Management indicated that cash reserves are expected to fund operations through at least the end of 2028, with upcoming regulatory filings and pipeline readouts being key catalysts for growth [10][11]