J&J, Protagonist Therapeutics Partner for IBS Drug in Deal Worth Up to $990 Million

Protagonist Therapeutics, a Newark, California-based clinical-stage biopharmaceutical company, has formed a worldwide license and collaboration agreement, worth up to $990 million, with Janssen Biotech, Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson, for the co-development and commercialization of PTG-200, Protagonist’s oral peptide IL-23 receptor antagonist for all indications, including inflammatory bowel disease..

PTG-200 is expected to enter Phase I clinical testing in normal healthy volunteers in the second half of 2017. The agreement builds upon a Johnson & Johnson Innovation, JJDC, Inc., Series B venture financing from 2013 in support of the discovery and development of Protagonist’s pipeline of oral peptide therapeutics.

Under the agreement, Protagonist will receive an upfront payment of $50 million from Janssen and will also be eligible to receive up to an additional $940 million in development, regulatory, and sales milestones. The development milestones represent payments that Protagonist would receive upon completion of each component of the Phase IIa/IIb clinical trial in Crohn’s disease if Janssen elects to retain its license following each of those events. Janssen will receive exclusive, worldwide rights to develop and commercialize PTG-200, and Protagonist will receive double-digit tiered royalties on net product sales.Protagonist Therapeutics and Janssen will jointly conduct the development of PTG-200 through Phase !! clinical proof-of-concept in Crohn’s disease, after which time Janssen will be responsible for development and commercialization. Per the terms of the agreement, Protagonist will have the right to co-detail PTG-200 in the United States.

The transaction is expected to close in the third quarter of 2017, subject to customary closing conditions.

Source: Protagonist Therapeutics

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