Protagonist 2025 Q2 Earnings Deepened Losses Amid Strong Pipeline and Cash Position

Protagonist Therapeutics (NASDAQ:PTGX) reported second quarter 2025 financial results and outlined significant advancements in its drug development pipeline, including two New Drug Application (NDA) submissions and key data presentations ahead of potential regulatory filings. The company reiterated a healthy cash runway through at least 2028, despite continued losses in line with its early-stage development profile.

Revenue
The company reported total revenue of $5.55 million in Q2 2025, a 33.1% increase from $4.17 million in Q2 2024. This growth was driven entirely by license and collaboration revenue, which accounted for the full $5.55 million in the quarter, reflecting ongoing development services under the Takeda partnership for rusfertide.

Earnings/Net Income
Protagonist’s net loss widened to $34.77 million in Q2 2025, or $0.55 per share, a 13.6% increase in the loss compared to $30.62 million, or $0.50 per share, in Q2 2024. The expansion in losses reflects higher R&D investment to advance multiple late-stage programs and early-stage pipeline candidates. Despite the deteriorating per-share earnings, the burn rate remains sustainable given the company’s $673.0 million in cash reserves.

Price Action
The stock price of Protagonist edged up 0.83% during the latest trading day, but declined 1.38% over the most recent full trading week. Year-to-date, the stock has gained 8.01%, indicating moderate momentum amid ongoing market volatility and mixed near-term performance.

Post-Earnings Price Action Review
Following the Q2 earnings report, a strategy of buying Protagonist shares on the earnings release date and holding for 30 days generated moderate returns but exhibited high volatility. The strategy delivered a compound annual growth rate (CAGR) of 11.10%, slightly below the benchmark by 0.17%. While the maximum drawdown of 0.00% and a Sharpe ratio of 0.17 suggested a relatively risk-averse approach, the 66.03% volatility highlighted the stock's sensitivity to broader market fluctuations and investor sentiment toward biotech innovation.

CEO Commentary
Dinesh V. Patel, Ph.D., President and CEO of Protagonist, emphasized 2025 as a pivotal year for the company, marked by major milestones in its therapeutic pipeline. These include the ASCO plenary presentation of rusfertide, the announcement of a triple agonist anti-obesity peptide candidate, and the first-ever NDA filing for icotrokinra in psoriasis. Patel also highlighted the Q4 2025 expected NDA filing for rusfertide in polycythemia vera (PV) and the advancement of early-stage assets PN-881 and PN-477 into clinical and IND-enabling studies, respectively. The tone reflects optimism about the company’s near-term regulatory and clinical progress.

Guidance
The company confirmed that its current cash, cash equivalents, and marketable securities of $673.0 million as of June 30, 2025, are expected to fund operations through at least the end of 2028. This extended runway is a critical factor in supporting the advancement of its late-stage programs without the need for near-term external financing.

Additional News
In addition to its Q2 results, Protagonist Therapeutics submitted an NDA for icotrokinra to treat psoriasis in partnership with Johnson & Johnson and is on track to file an NDA for rusfertide in polycythemia vera in Q4 in collaboration with Takeda. The company also plans to present Phase 2b ANTHEM trial data for icotrokinra in ulcerative colitis at the United European Gastroenterology Week (UEGW) in October. Further, Protagonist advanced its pipeline with the development of PN-477, a triple agonist anti-obesity peptide, and PN-881, an oral IL-17 peptide antagonist showing strong preclinical results. These developments underscore the company’s robust pipeline of innovative peptide therapeutics across multiple therapeutic areas, including immunology, hematology, and metabolic disease. The partnership strategy with industry leaders has been instrumental in balancing risk and reward while retaining ownership of promising early-stage assets.