Billionaire Tom Steyer ranks Protagonist Therapeutics fourth on list of ten high-potential stocks
The recent FDA approval of Icotyde has triggered a $50 million milestone payment, with further regulatory and sales milestones valued at up to $580 million possible.
Billionaire investor Tom Steyer has identified Protagonist Therapeutics Inc as a key opportunity in his portfolio, ranking the company fourth among ten stocks with significant upside potential. This assessment comes from Steyer's fund, Farallon Capital, which has maintained a consistent presence in Protagonist's 13F filings since the fourth quarter of 2017.
The investment thesis has strengthened considerably over the years, with Farallon Capital increasing its holding from an initial stake of 900,000 shares to approximately 6.1 million shares by the fourth quarter of 2025. This substantial accumulation of shares aligns with the company's recent commercial milestones and regulatory successes.
Central to this investor interest is the recent FDA approval and commercial launch of Icotyde, an oral treatment for moderate-to-severe plaque psoriasis. Developed in collaboration with Johnson & Johnson, the drug is viewed by hedge funds as a major competitor to existing injectable biologics. It holds the distinction of being the only once-daily oral IL-23R peptide currently on the market, offering the convenience of a pill with potency typically reserved for injections.
The commercialisation of Icotyde has already generated a $50 million milestone payment for Protagonist Therapeutics in the current quarter. Beyond this immediate cash injection, the company remains eligible for further payments of up to $580 million tied to future regulatory and sales milestones. The partnership with Johnson & Johnson allows Protagonist to collect high-margin royalties without the operational overhead of maintaining a global sales force.
While the firm continues to develop other assets, including Rusfertide for polycythemia vera, the focus of elite investor attention remains on the oral peptide's market impact. The ability to deliver a once-daily oral formulation challenges the dominance of injectable therapies, a shift that Farallon Capital appears to have recognised early in its long-term investment strategy.
