Benzinga·2025-10-10 17:06Core Viewpoint - Johnson & Johnson is in discussions to acquire Protagonist Therapeutics, with the deal terms yet to be finalized and no guarantee of completion [1][2]. Group 1: Acquisition Details - Johnson & Johnson and Protagonist Therapeutics currently collaborate on developing an oral therapy for plaque psoriasis and ulcerative colitis [2]. - Johnson & Johnson holds exclusive commercialization rights for the treatment and owns approximately 4% of Protagonist's shares [3]. - The acquisition would enhance Johnson & Johnson's immunology business and provide access to rusfertide, an experimental therapy co-developed with Takeda Pharmaceutical Co. Ltd. [3][4]. Group 2: Market Performance - Protagonist's stock has increased by around 132% year-to-date, with a more than 100% surge this year due to positive clinical updates [1][5]. - Since its IPO in 2016, Protagonist's stock has appreciated over 450%, indicating strong investor confidence in its therapeutic pipeline [5]. Group 3: Strategic Implications - The potential acquisition aligns with Johnson & Johnson's strategy to counteract competition for its leading immunology drug, Stelara, through new product launches and targeted acquisitions [6]. - Acquiring Protagonist would support Johnson & Johnson's long-term growth in immunology and oncology amidst a competitive landscape [6].