Protagonist Therapeutics Reports 89% Revenue Decline and $11.7 Million Net Loss in Q1 2025

Protagonist Therapeutics, Inc. reported a significant decline in its financial performance for the first quarter of 2025, with total revenue of $28.3 million, a decrease of 89% compared to $255.0 million in the same period of 2024. This sharp drop was primarily attributed to the recognition of a $254.1 million upfront payment from the Takeda Collaboration Agreement in the previous year, which was not repeated in the current quarter. The company recorded a net loss of $11.7 million, contrasting sharply with a net income of $207.3 million in the prior year, resulting in a net loss per share of $0.19.

Operating expenses for Protagonist Therapeutics slightly decreased to $47.6 million from $48.6 million year-over-year. Research and development expenses rose by 6% to $35.9 million, driven by increased costs associated with pre-clinical and drug discovery programs, including the development of the IL-17 antagonist PN-881. Conversely, general and administrative expenses fell by 21% to $11.7 million, largely due to a reduction in one-time advisory and legal fees related to the Takeda agreement.

In terms of operational metrics, the company maintained a stable workforce, with 97 full-time equivalent employees in research and development and 27 in general and administrative roles, consistent with the previous year. Protagonist's cash, cash equivalents, and marketable securities totaled $697.9 million as of March 31, 2025, an increase from $559.2 million at the end of 2024, bolstered by a $165 million milestone payment received from Johnson & Johnson (JNJ) in January 2025.

Strategically, Protagonist continues to advance its clinical programs, with icotrokinra and rusfertide in Phase 3 development. The company is also preparing for potential New Drug Application (NDA) submissions in 2025. The collaboration with Takeda is expected to yield additional milestone payments, including a $50 million payment upon FDA approval of rusfertide. Protagonist's management remains optimistic about the future, emphasizing the importance of ongoing clinical trials and the potential for new product candidates to drive growth. However, they acknowledge the need for additional funding to support these initiatives, particularly in light of the uncertain macroeconomic environment.