Why Did Protagonist Therapeutics Stock Soar Today?

Protagonist Therapeutics (PTGX) shares jumped over 33% in afternoon trading after a report indicated that Johnson & Johnson (JNJ) is in discussions to acquire the company in an attempt to deepen their existing partnership.

According to The Wall Street Journal report, citing people familiar with the matter, the deal’s outcome is not guaranteed, and the exact details of the discussions could not be immediately learned. The report added that the deal is likely to be done at a premium and may value Protagonist above its current market value of over $4 billion as of Thursday’s close.

Shares of Johnson & Johnson rose marginally in afternoon trading on Friday. Retail sentiment on Johnson & Johnson remained unchanged in the ‘bullish’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

The Wall Street Journal noted that this deal would provide Johnson & Johnson access to the drug Rusfertide, from Protagonist and partner Takeda Pharmaceutical. The drug has shown encouraging results in late-stage testing for treating polycythemia vera, a rare form of blood cancer.

Retail sentiment on Protagonist jumped to ‘extremely bullish’ from ‘neutral’ territory a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

Shares of Johnson & Johnson have gained over 32% this year, and Protagonist stock has jumped 132% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Levi Strauss Drops 12% Post-Earnings After Wall Street Raises Concerns On Margins

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