Protagonist Therapeutics Announces Resolution of Contract Dispute with Zealand Pharma

Rhea-AI Summary

Protagonist Therapeutics (PTGX) has successfully resolved a dispute with Zealand Pharma regarding their 2012 Collaboration Agreement, significantly reducing future milestone payments and royalties for the product candidate rusfertide. The agreement reduces these payments by 50%, excluding $2.5 million in near-term milestones. Protagonist will also make a $1.5 million payment to Zealand in August 2022. This resolution follows arbitration proceedings initiated by Protagonist in 2020 and is expected to streamline the financial obligations related to rusfertide's development.

Positive

• Reduced future milestone payments and royalties by 50%, easing financial obligations.
• Resolution of the dispute allows Protagonist to focus on development efforts.

Negative

• Protagonist will incur a $1.5 million payment to Zealand in August 2022.

NEWARK, Calif., Aug. 10, 2021 /PRNewswire/ -- Protagonist Therapeutics, Inc. (Nasdaq: PTGX) ("Protagonist" or "the Company") today announced it has resolved its Collaboration Agreement dispute with Zealand Pharma by reducing future development and sales milestone payments and royalties owed to Zealand for Protagonist's product candidate rusfertide under the companies' 2012 Collaboration Agreement.

Under the terms of an agreement that ends arbitration proceedings Protagonist initiated in 2020, future development and sales milestone payments (other than $2.5 million in near-term milestones) and royalties for rusfertide have been reduced by 50%.  Milestones and royalty payments will be due for sales and milestones achieved by either Protagonist or any future rusfertide licensee or partner.  Protagonist will also make a $1.5 million payment to Zealand in August 2022.

Additional details are available on Protagonist's Form 8-K filed with the SEC on August 10, 2021.

About Protagonist Therapeutics

Protagonist Therapeutics is a biopharmaceutical company with multiple peptide-based investigational new chemical entities in different stages of development, all derived from the Company's proprietary technology platform.

Protagonist's pipeline includes rusfertide (PTG-300), an investigational, injectable hepcidin mimetic currently in a Phase 2 proof-of-concept clinical trial for polycythemia vera (PV), a Phase 2 study in PV subjects with high hematocrit levels, and a Phase 2 study for hereditary hemochromatosis. Based on the feedback provided by the FDA and EU regulatory authorities, the Company plans to initiate a single, global Phase 3 randomized, placebo-controlled trial evaluating the efficacy and safety of a once weekly, subcutaneously self-administered dose of rusfertide.

The Company is also evaluating an orally delivered, gut-restricted alpha-4-beta-7 integrin specific antagonist peptide (PN-943) currently in a Phase 2 study in adults with moderate to severe active ulcerative colitis (UC). The Company is targeting ulcerative colitis as the initial indication.

The Company has a worldwide license and collaboration agreement with Janssen Biotech, Inc., for the development of oral peptide IL-23 receptor antagonists. Compounds included in this agreement are PTG-200, PN-235 and PN-232. PTG-200 is an orally delivered, gut-restricted, interleukin-23 receptor specific antagonist peptide in a Phase 2 clinical trial for Crohn's disease. PN-235 and PN-232, both second-generation oral interleukin-23 receptor antagonist candidates, are currently in Phase 1 studies.

Protagonist is headquartered in Newark, California. For further information, please visit www.protagonist-inc.com.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/protagonist-therapeutics-announces-resolution-of-contract-dispute-with-zealand-pharma-301351635.html

SOURCE Protagonist Therapeutics, Inc.

FAQ

What is the recent announcement from Protagonist Therapeutics regarding Zealand Pharma?

Protagonist Therapeutics announced the resolution of a contract dispute with Zealand Pharma, reducing future milestone payments and royalties for rusfertide by 50%.

How much will Protagonist pay Zealand Pharma in August 2022?

Protagonist will make a $1.5 million payment to Zealand Pharma in August 2022.

What is the significance of the resolution of the dispute for Protagonist Therapeutics?

The resolution eases financial obligations and allows Protagonist to concentrate on the development of rusfertide.

What is rusfertide and where is it in development according to Protagonist's latest press release?

Rusfertide is an injectable hepcidin mimetic currently in Phase 2 clinical trials for polycythemia vera and hereditary hemochromatosis.

What impact did the arbitration proceedings initiated by Protagonist have?

The arbitration proceedings led to the resolution of the dispute and a more favorable financial arrangement concerning future payments.