A year ago, the Protagonist Board was said to be still...

A year ago, the Protagonist Board was said to be still considering its future direction – IPO, buyout or whatever. Listing obviously won out.

Comparisons? Both Australian university spinouts, both founded in 2001, both have peptide libraries, a platform technology and in-house drug development program. Phylogica listed on the ASX in 2005, Protagonist has just listed on the NASDAQ. Cash burn to date, Phylogica ~ $42 million, Protagonist ~ $51 million.

Protagonist’s proprietary drug development program is focused on oral peptides for GI conditions, using pathways already targeted by injectable antibiotics. Phylogica's program is focused on intravenously delivered peptide therapeutics for intracellular targets in blood cancers which are beyond the reach of existing therapies.

Protagonist moved its lead compound for the treatment of moderate to severe ulcerative colitis through preclinical in 2014, IND-enabling studies in 2015 and commenced a Phase 1 clinical in January this year. A Phase 2b study is supposed to commence before the end of this year. The company also has one other drug in IND-enabling studies and another in preclinical development.

Phylogica’s lead program is now roughly 3 years behind Protagonist’s. It is hoped that a POC data pack for PYC’s lead compound, an FPP-iMYc fusion MYC inhibitor for the treatment of lymphoma, will be ready by the end of this year and that lead optimisation will be completed by mid-next year. Preclinical and IND enabling studies are currently slated for H2 2017 through 2018. The company has said that it hopes to partner its lead program prior to those studies. The company also has a Stat 5 inhibitor and YB 1 inhibitor at an earlier stage of development.

There’s a big difference in current market cap – Phylogica ~AU $30million, Protagonist ~ AU$220 million. Even if PYC keeps pace, I can’t see the Australian market putting a $220 million value on a pre-Phase 2 biotech.