8 High Growth High Margin Stocks to Invest In Now

6. Protagonist Therapeutics Inc. (NASDAQ:PTGX)

5-Year Net Income CAGR: 180.40%

TTM Net Profit Margin: 53.26%

Number of Hedge Fund Holders: 36  

Protagonist Therapeutics Inc. (NASDAQ:PTGX) operates as a clinical-stage biopharmaceutical company, focusing on discovering and developing peptide-based new chemical entities to address significant unmet medical needs. It provides effective and well-tolerated treatment options for patients with autoimmune diseases.

JNJ-2113, a potential treatment for psoriasis, is being evaluated in two Phase 3 clinical trials. The ICONIC-LEAD and ICONIC-TOTAL studies are expected to complete their primary endpoint portions by Q4 2024. The ANTHEM study, investigating JNJ-2113 for ulcerative colitis, is also anticipated to complete its primary endpoint by Q4.

Rusfertide, a potential treatment for polycythemia vera, has shown promising results in the REVIVE study. Long-term follow-up data presented at the European Hematology Association (EHA) 2024 demonstrated durable hematocrit control, reduced need for bloodletting, and a favorable safety profile. The VERIFY study, also evaluating rusfertide, is expected to report topline results for the primary endpoint by Q1 2025.

The company received a $300 million upfront payment for a collaboration agreement. $255 million was recognized as revenue in the first quarter of 2024. Over time, the remaining $45 million will be recognized as revenue as Protagonist Therapeutics Inc. (NASDAQ:PTGX) completes its obligations in the ongoing Phase 3 VERIFY trial for rusfertide.

The company made $4.17 million in Q2 2024 revenue, missing Street estimates by $2.50 million. There was a loss per share of $0.50. It has shown strong growth potential, despite missing revenue estimates in Q2. The track record of exceeding earnings expectations and recent share price gains suggest it could be a promising investment.