Protagonist Therapeutics secures $22m to advance IBD treatment

Protagonist Therapeutics, a clinical-stage biopharmaceutical company specializing in the discovery and development of novel peptide-based drugs, has successfully raised $22 million in new equity financing. This significant financial injection comes from BVF Partners and their affiliates, aimed at propelling the development of cutting-edge treatments for patients with substantial unmet medical needs.

In this financing round, Protagonist Therapeutics will issue 2,750,000 shares of its common stock to the investors. This strategic move is designed to accelerate the advancement of the company’s promising drug candidate, PTG-100. PTG-100 is an oral peptide that acts as an alpha-4-beta-7 integrin antagonist, currently under investigation for the potential treatment of inflammatory bowel diseases (IBDs), including ulcerative colitis and Crohn’s disease.

Additionally, the investment deal includes an issuance of five-year warrants for the purchase of up to 2,750,000 shares of common stock, split equally at exercise prices of $10.00 and $15.00 per share, respectively. This arrangement not only provides immediate financial resources but also aligns long-term investor interests with the company’s success.

The new funding is expected to significantly bolster Protagonist Therapeutics’ research and development efforts. The focus will primarily be on advancing PTG-100 through the necessary clinical trials to demonstrate its efficacy and safety in treating inflammatory bowel diseases—a field where patient options are still in critical need of expansion.

The biopharmaceutical industry views this type of targeted therapy as a game-changer, particularly in treating complex conditions like inflammatory bowel diseases which significantly impact patients’ quality of life. By focusing on peptide-based therapies, Protagonist Therapeutics is at the forefront of developing more precise and potentially less invasive treatment options compared to traditional methods.

The transaction is expected to close within the week, marking a swift move towards the utilization of the funds for clinical advancements. With the support of BVF Partners, Protagonist Therapeutics is well-positioned to accelerate its clinical programs and potentially bring new, effective treatment options to market.

This funding not only highlights the potential of PTG-100 as a transformative treatment but also underscores the confidence in Protagonist Therapeutics’ approach to addressing critical gaps in healthcare.