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).
While a deal is not certain, the acquisition could significantly increase Protagonist’s current market value of more than $4bn.
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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.
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.
This addition would bolster J&J’s cancer and immune drug portfolio.
Protagonist’s stock has surged more than 70% in 2025, propelled by positive trial outcomes for its treatments.
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By GlobalDataSince its initial public offering in 2016, the company’s shares have soared more than 450%.
Despite the potential acquisition size, it would be manageable for J&J, which has a market capitalisation nearing $460bn.
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.
J&J has a history of strategic acquisitions, including the $15bn purchase of Intra-Cellular Therapies in January 2025.
In March, J&J Innovative Medicine announced that it is expanding its US footprint with a $55bn investment up to 2029.
In 2024, J&J expanded its biotech footprint with the $850m acquisition of Proteologix, which focuses on immune-mediated diseases.
