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Ferguson initiated with an Outperform at Oppenheimer
Ferguson Initiates Coverage on Protagonist Therapeutics With an Outperform Rating
Analyst Summary
On Monday, August 29, 2022, analyst Kevin Ferguson of Oppenheimer initiated coverage on Protagonist Therapeutics (PTGX) with an Outperform rating and a price target of $48, implying a 78% upside from the current market price.
PTGX Pipeline Overview
Ferguson highlighted Protagonist's promising pipeline, including its lead candidate, PTG-300, a dual orexin receptor antagonist for the treatment of narcolepsy, which is expected to report Phase 3 data in the fourth quarter of 2022.
Other pipeline assets include:
- PTG-200, a selective kappa opioid receptor agonist for the treatment of pruritus associated with chronic kidney disease, which is expected to initiate Phase 2b trials in the second half of 2022.
- PTG-100, a mu-opioid receptor agonist for the treatment of acute and chronic pain, which is expected to enter the clinic in the first half of 2023.
Market Opportunity
Ferguson emphasized the significant market opportunities for Protagonist's pipeline, particularly in narcolepsy and pruritus associated with chronic kidney disease, which have limited treatment options.
The global narcolepsy market is estimated to reach $1.5 billion by 2027, while the global pruritus market is estimated to reach $4.4 billion by 2026.
Financial Outlook
Ferguson projected that Protagonist's revenue will grow from $12 million in 2022 to $467 million in 2027, driven by the potential commercialization of PTG-300 and other pipeline candidates.
The analyst also expects the company to achieve profitability in 2025.
Conclusion
Ferguson's initiation of coverage with an Outperform rating reflects Oppenheimer's bullish outlook on Protagonist Therapeutics' pipeline, market opportunities, and growth potential.
Investors will be closely watching the upcoming Phase 3 data for PTG-300 and other pipeline developments to assess the company's progress and potential value creation.
Disclaimer: The information provided in this blog post is solely for informational purposes and should not be construed as financial advice. Investors should always conduct their own research and due diligence before making any investment decisions.