10 Cheap Biotech Stocks to Invest in Now

7. Protagonist Therapeutics, Inc. (NASDAQ:PTGX)

P/E Ratio: 14.06 

Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is a biopharmaceutical company specializing in peptide-based therapies for blood disorders and inflammatory diseases, including polycythemia vera and ulcerative colitis. The company’s proprietary peptide platform enables the development of highly potent and specific drug candidates, including rusfertide which is a promising treatment for polycythemia vera with favorable clinical trial results.

Protagonist Therapeutics, Inc. (NASDAQ:PTGX)’s strategic collaborations, such as a global agreement with Takeda Pharmaceutical, have secured a $300 million upfront payment and up to $630 million in milestone payments. The company also partners with Johnson & Johnson for JNJ-211 which is an oral IL-23 receptor antagonist.

Financially, the company maintains a robust position, with cash, cash equivalents, and marketable securities totaling $583.3 million as of September 30, 2024, compared to $341.6 million at the end of 2023. For Q3 2024, the corporation reported $4.7 million in license and collaboration revenue and a net loss of ($33.2) million which reflected a slight improvement from the previous year’s quarterly loss. However, the first nine months of 2024 marked a turning point, with a net income of $143.5 million due to a $300 million upfront payment from its collaboration with Takeda Pharmaceutical.

This partnership and Protagonist Therapeutics, Inc. (NASDAQ:PTGX)’s expanding pipeline signal strong growth potential. Key upcoming milestones include top-line results for JNJ-2113 Phase 3 trials in psoriasis by Q4 2024 and Phase 2b results in ulcerative colitis by Q1 2025. Additionally, rusfertide Phase 3 results in polycythemia vera are expected in early 2025, along with the nomination of a development candidate for an oral IL-17 peptide antagonist.

Analysts hold a consensus Strong Buy rating on the stock. Analysts recently set a 12-month average price target of $58.14 for Protagonist Therapeutics (NASDAQ:PTGX), with forecasts ranging from $47.00 to $67.00. This represents a potential 58.55% increase from its current price of $36.67.