ZACKS·2025-10-13 19:50Core Insights - Protagonist Therapeutics (PTGX) shares increased by 30% following reports of acquisition interest from Johnson & Johnson (J&J) [1] - Ongoing discussions between PTGX and J&J are noted, but specific deal terms remain undisclosed [1] - The potential acquisition is seen as a strategic move for J&J to offset declining sales from its drug Stelara [8] Company Overview - Protagonist Therapeutics is a clinical-stage company based in California, focusing on developing novel peptides [2] - The lead candidate, icotrokinra (JNJ-2113), is under FDA review for plaque psoriasis and is being developed for various immunology diseases [2] - PTGX has an existing partnership with J&J, which holds exclusive rights to develop icotrokinra in phase II studies and beyond [3] Financial Performance - Year-to-date, PTGX stock has surged by 125%, significantly outperforming the industry growth of 7% [4] Strategic Implications - J&J's interest in PTGX is driven by the need to compensate for a nearly 43% decline in Stelara sales due to generic competition [8] - The acquisition could enhance J&J's portfolio in immunology and hematology, diversifying revenue streams [9] Industry Context - The pharmaceutical sector continues to pursue strategic acquisitions despite macroeconomic challenges [11] - Recent notable transactions include Pfizer's $4.9 billion acquisition of Metsera and Roche's $3.5 billion acquisition of 89bio, indicating ongoing interest in innovative biotech assets [12][13][15]