Johnson & Johnson is in advanced discussions to acquire Protagonist Therapeutics, a biotech company valued at $4.2 billion, according to sources familiar with the matter. The potential deal would expand J&J's immunology portfolio and strengthen its position in oral treatments for autoimmune diseases.
Market Response and Valuation
Protagonist Therapeutics' shares surged more than 30% in afternoon trading following reports of the acquisition talks. The company had a market capitalization of $4.2 billion as of Thursday's close, reflecting significant investor confidence in the potential transaction.
Existing Partnership and Strategic Assets
The two companies already have an established collaboration centered on icotrokinra, an oral treatment for immune diseases including plaque psoriasis and ulcerative colitis. Under their current partnership, J&J holds exclusive rights to commercialize the product, positioning the pharmaceutical giant as the primary beneficiary of the drug's commercial success.
J&J's existing stake in Protagonist includes nearly 4% of the company's shares, according to FactSet data, demonstrating the pharmaceutical giant's previous investment in the biotech firm's potential.
Deal Structure and Timeline
While discussions are ongoing, a deal is not guaranteed and the exact details being discussed could not be learned, according to reports. The acquisition talks represent J&J's continued strategy to bolster its pipeline through strategic acquisitions in the immunology space.
Therapeutic Focus
The centerpiece of the potential acquisition is icotrokinra, which targets immune diseases that represent significant unmet medical needs. Plaque psoriasis and ulcerative colitis affect millions of patients worldwide, and oral treatment options could provide significant advantages over current injectable therapies in terms of patient convenience and adherence.
Both Protagonist Therapeutics and Johnson & Johnson declined to comment on the acquisition discussions when contacted for statements regarding the potential transaction.
