Protagonist Turns to Profit After MIMRYLO Approval

The Tip Desk · November 5, 2026 · 3 min read

License and collaboration revenue reached $274.4 million in the third quarter as $266.6 million of Takeda's $275 million in MIMRYLO payments was recognized, and net income was $220.0 million, or $3.07 a share.

Protagonist Therapeutics (PTGX), a biopharmaceutical company built on a peptide platform, reported license and collaboration revenue of $274.4 million for the third quarter ended September 30, 2026, versus $4.7 million a year earlier, as FDA approval of MIMRYLO (rusfertide) triggered $275 million in payments from partner Takeda.

The company recognized $266.6 million of that revenue from proportional recognition of the Takeda payments, which consisted of a $200 million opt-out fee and a $75 million approval milestone. The remaining $7.8 million came from development services under the Takeda collaboration and other revenue. The cash was received in October 2026.

Net income was $220.0 million, or $3.32 a share on a basic basis and $3.07 a share diluted, compared with a net loss of $39.3 million, or $0.62 a share, in the third quarter of 2025. Income from operations was $218.3 million, versus an operating loss of $46.4 million a year earlier. Total operating expense was $56.1 million.

On August 28, Takeda received FDA approval of MIMRYLO for erythrocytosis in adults with polycythemia vera. The drug is the first and only hepcidin mimetic peptide therapy approved for that indication. Protagonist discovered MIMRYLO and led development through its December 2025 NDA filing. After an April 2026 opt-out election, Takeda holds exclusive worldwide development and commercialization rights. Protagonist is eligible for tiered royalties of 14% to 29% on worldwide net sales, an approximately 21% weighted-average rate at $1.5 billion in annual net sales, and up to an additional $875 million in future milestone payments.

ICOTYDE (icotrokinra), the oral IL-23 receptor antagonist licensed to Johnson & Johnson, completed its second full quarter of U.S. commercial sales in the third quarter after a March 2026 launch. During the quarter it received regulatory approvals in China, Japan and the European Union. Under the collaboration, Protagonist receives tiered royalties of 6% to 10% on global net sales, with an approximate 7.25% weighted-average rate at $4 billion in annual net sales, and is eligible for up to an additional $580 million in future milestones.

Research and development expense was $41.3 million, up from $40.0 million a year earlier. The company said the increase reflected clinical and preclinical programs, partially offset by lower rusfertide VERIFY trial costs. General and administrative expense was $13.7 million, versus $11.1 million a year earlier, attributed to higher stock-based compensation and other personnel-related expenses.

The company said it expects R&D expenses to increase for the remainder of 2026 versus prior quarters, driven by advancing PN-881 into a comprehensive Phase 2 psoriasis program, planned clinical manufacturing and CMC investments, additional preclinical discovery, and higher headcount and stock-based compensation. A Phase 1 study of PN-881, an oral IL-17 antagonist, has been completed; Protagonist plans to start a Phase 2b dose-range-finding study in plaque psoriasis in early first quarter 2027. A Phase 1 study of oral PN-477o is anticipated in the first half of 2027.

Cash, cash equivalents and marketable securities were $834.6 million as of September 30, 2026, compared with $646.0 million as of December 31, 2025. On September 8, the board authorized a share repurchase program of up to $300 million, to be funded from cash, cash equivalents, marketable securities, and royalties and other payments under the Takeda and Johnson & Johnson collaborations.