Johnson & Johnson (J&J) is in discussions to purchase Protagonist Therapeutics, a move that would enhance their current collaboration, as reported by The Wall Street Journal (WSJ).<\/p>\n
While a deal is not certain, the acquisition could significantly increase Protagonist’s current market value of more than $4bn.<\/p>\n
According to FactSet, J&J, which holds 4% of Protagonist’s shares, is collaborating with the company on an oral immune disease treatment, targeting conditions such as plaque psoriasis and ulcerative colitis, and holds exclusive commercialisation rights.<\/p>\n
The acquisition would also grant J&J access to rusfertide, a drug that demonstrated promise in late-stage trials for polycythaemia vera, a rare blood cancer, developed in partnership between Protagonist and Takeda Pharmaceutical.<\/p>\n
This addition would bolster J&J’s cancer and immune drug portfolio.<\/p>\n
Protagonist’s stock has surged more than 70% in 2025, propelled by positive trial outcomes for its treatments.<\/p>\n
Since its initial public offering in 2016, the company’s shares have soared more than 450%.<\/p>\n
Despite the potential acquisition size, it would be manageable for J&J, which has a market capitalisation nearing $460bn.<\/p>\n
The healthcare giant is facing competition for its immune-disease drug Stelara and is seeking new products to mitigate the impact of sales losses due to patent expirations.<\/p>\n
J&J has a history of strategic acquisitions, including the $15bn purchase of<\/a> Intra-Cellular Therapies in January 2025.<\/p>\n In March, J&J Innovative Medicine announced that it is expanding its US footprint with a $55bn investment<\/a> up to 2029.<\/p>\n In 2024, J&J expanded its biotech footprint with the $850m acquisition<\/a> of Proteologix, which focuses on immune-mediated diseases.<\/p>\n