AAA Protagonist to perform flotation in $75m IPO

Protagonist to perform flotation in $75m IPO

Protagonist Therapeutics, a US-based oral peptide drug developer backed by pharmaceutical companies Johnson & Johnson, Eli Lilly and Pharmstandard, filed for a $75m initial public offering on Monday.

Originally founded in Australia in 2001, Protagonist is working on orally administered drugs to treat inflammatory bowel disease (IBD). They focus on the same biological pathways as currently available injectable antibody treatments, but would theoretically be safer and more convenient.

The proceeds will support the advancement of its lead product candidate, PTG-100, through phase 2b clinical trials and enable it to begin a phase 1 trial for another candidate, PTG-200. Additional funds would go to develop other drug candidates.

The company has raised $67m in funding since 2006, the year when Lilly Ventures, the corporate venturing unit owned by Eli Lilly, joined Starfish Ventures and QIC BioVentures for a $9m series A round.

Johnson & Johnson Development Corporation (JJDC), the strategic investment arm of Johnson & Johnson, led Protagonist’s $18m series B round in 2013, investing together with Pharmstandard, Lilly Ventures, and Starfish.

All four series B participants then returned for a $40m series C in July 2015 led by Canaan Partners that included Adage Capital Management, RA Capital Management and Foresite Capital.

Canaan is the company’s largest shareholder, with a 20.9% stake, while JJDC holds 20.8%, Lilly Ventures 16.9% and Pharmstandard 8.5%. Other notable shareholders include Adage Capital (9.3%), Starfish (7.8%) and RA Capital (7.7%).

Leerink Partners, Barclays Capital and BMO Capital Markets have been appointed underwriters for the offering.

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