Prospective acquisition of Protagonist Therapeutics centers on oral drug for immune diseases
Johnson & Johnson (JNJ) is reportedly in active talks to acquire Protagonist Therapeutics (PTGX), according to people familiar with the matter, a move that sent Protagonist’s shares soaring more than 30 % during afternoon trading. The company’s market value stood at about $4.2 billion as of Thursday’s close.
At the heart of the prospective deal is icotrokinra, a once-daily oral therapy targeting various immune-mediated conditions such as plaque psoriasis and ulcerative colitis. Under the existing agreement, J&J holds exclusive commercialization rights to the drug. The two firms have been collaborating on development, and the acquisition would effectively give J&J full control over a promising pipeline asset.
The strategic rationale for J&J appears compelling. Its flagship immune-disease drug Stelara is facing increasing pressure from biosimilars and competitors, putting strain on long-term growth in immunology. The potential acquisition therefore offers a pathway to replenish and strengthen its next-generation therapeutics portfolio.
Protagonist declined to comment on the acquisition talks, and J&J did not immediately respond to requests for comment.
If completed, the deal would mirror a broader trend among major pharmaceutical players seeking to bolster their pipelines via biotech takeovers. For J&J, securing full ownership of icotrokinra could accelerate its ambitions in oral immunology treatments and improve competitive footing in a fast-evolving market.
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