Relevant benchmark..?

An article in today's AFR I thought may have some relevance to PYC, from a valuation, process and challenges perspective. I've posted some extracts. Any thoughts?

Protagonist Therapeutics (NASDAQ: PTGX) was spun out of UQ's Institute For Molecular Bioscience in 2006, after initially being founded in 2001 by Associate Professor Mark Smythe…

At the end of last week, having listed on Wednesday, the company is valued at $US167.7 million.

Professor Smythe's team have worked for 15 years developing a new class of drug, which aims to combine the convenience and accuracy of 'small molecule' systems like pills and eyedrops with the potency of 'large molecule' injectable drugs.

Protagonist has completed 'phase one' trials in the US Food & Drug Administration's three-phase approval process for a treatment for a type of inflammatory bowel disease, ulcerative colitis, and is in pre-clinical trials for treatment of another, Crohn's disease.

Peptide-based drugs have the advantage of high potency at a low dose, and high selectivity, meaning they tend to bypass healthy tissue and bind only to their target antigens, producing fewer side effects than 'large molecule' drugs.

Professor Smythe said a disadvantage was they had evolved to become almost like a food, meaning they are quickly broken down in the gut. Therefore to date they have had to be injected, and then what little peptide makes it to the bloodstream is rapidly cleared by the kidneys.

Professor Smythe's team has worked to build a 'super peptide' by re-engineering naturally-occurring 'constrained peptides', which contain 'disulfide' bonds that make them stronger.

"You find constrained peptides in venom, so the good news for us is Australia is full of them," he said.
"We go in and change their chemistries completely, but we're left with something which, in pill form, is going to be able to hit the big targets for which you previously needed a large molecule injectable."

has also built a technology platform for the discovery and optimisation of 'constrained peptides' for use against other diseases.

Since 2011, this technology platform has provided precious revenue for Protagonist, which according to Smythe "has never had more than two years' runway".

In return for research funding, Protagonist has applied its platform – which allows millions of molecules to be prepared via digitised 'libraries' of protein...

Protagonist has raised $88 million since it was founded, and has so far lost $51 million of it. Expect more red ink: Professor Smythe said the average cost of getting a drug to FDA approval was $1 billion.