Protagonist Therapeutics Plans Strategic Exit from Takeda Profit-Sharing Deal
Newark, Wednesday, 25 February 2026.
Bolstered by a $646 million cash position, Protagonist moves to reclaim full rusfertide economics by exiting its Takeda profit-sharing agreement, coinciding with the drug’s recent FDA filing.
Strategic Shift Amidst Strong Cash Reserves
Protagonist Therapeutics (NASDAQ: PTGX) has signaled a major strategic pivot alongside its financial results for the fourth quarter and full year ended December 31, 2025. On February 25, 2026, the company announced its intention to opt out of the 50:50 profit and loss sharing arrangement with Takeda Pharmaceuticals for its lead asset, rusfertide [1][2]. This decision is underpinned by a robust balance sheet; the company reported a cash position of $646 million in cash, cash equivalents, and marketable securities, which management projects will provide an operational runway extending through at least the end of 2028 [1][2]. This liquidity allows Protagonist to assume greater control over its economic destiny just as rusfertide moves closer to potential commercialization.
Financial Performance and Revenue Volatility
The company’s latest financial figures reflect the cyclical nature of biotechnology collaborations. For the full year 2025, Protagonist reported total revenue of $46.0 million, a sharp decrease of -89.411% from the $434.4 million recorded in 2024 [2]. This decline was primarily driven by the timing of license and collaboration revenues, which fell to $7.4 million in the fourth quarter of 2025 compared to $170.6 million in the same period the prior year [2]. Consequently, the company swung to a net loss of $44.4 million, or $0.69 per share, for the fourth quarter of 2025, compared to a net income of $131.7 million, or $2.11 per share, in the fourth quarter of 2024 [2]. Despite the current losses, the substantial cash reserves insulate the company from immediate capital raising needs.
Reclaiming Rusfertide Economics
The decision to exit the profit-sharing agreement with Takeda is timed to coincide with critical regulatory milestones. An NDA for rusfertide, intended for the treatment of polycythemia vera, has been submitted to the FDA, with the company anticipating potential approval and launch later in 2026 [1][2]. Protagonist expects to exercise its opt-out right during a specific 90-day window that is slated to open in the second quarter of 2026 [2]. By opting out, Protagonist aims to alter the economic terms of the partnership, likely shifting towards a royalty-based model rather than sharing the commercialization costs and profits equally. This move follows a period of significant market appreciation for the stock, which had rallied 120% over the past year as of mid-February 2026, although major shareholder BVF recently liquidated a stake worth approximately $170.12 million [6].
Pipeline Expansion and Future Catalysts
Looking beyond rusfertide, Protagonist is diversifying its portfolio with new high-value targets. The company announced the expansion of its pre-clinical pipeline to include candidates addressing the obesity and metabolic space: PN-477, a triple GLP-GIP-GCG agonist, and PN-458, a dual GLP-GIP agonist [1]. In the nearer term, the company is awaiting a U.S. regulatory decision for ICOTYDE (icotrokinra), which is also anticipated in 2026 with a potential launch this year [1][2]. Additionally, the Phase 1 study for PN-881 is expected to conclude by mid-2026 [1]. CEO Dinesh V. Patel is set to provide further insights into these developments during a series of investment bank conferences scheduled throughout March 2026, including events hosted by TD Cowen and Barclays [3].