Thinly traded micro cap Protagonist Therapeutics (PTGX +12.8%) is up on below-average volume on the heels of its expanded license and collaboration agreement with Johnson & Johnson (JNJ +0.1%) unit Janssen Biotech to co-develop and commercialize PTG-200 for all indications, including inflammatory bowel disease. It broadens the scope of the original 2017 contract via the inclusion of second-generation IL-23 receptor antagonists.
Under the terms of the updated agreement, PTGX will receive a $25M milestone payment on the consummation of the deal and will be eligible to receive over $1B in additional milestones.
Janssen will pay certain costs and milestones related to advancing preclinical candidates through Phase 1. Janssen will own exclusive global rights to develop and commercialize PTG-200 and any second-generation compounds resulting from the partnership. PTGX will receive tiered royalties on net sales.
Subscribe for full text news in your inbox