Johnson & Johnson's $300M Bet on Biotech Stock Protagonist Therapeutics

Johnson & Johnson has diversified its portfolio beyond prescription medications and medical devices by investing in various biotech stocks. A recent 13F filing revealed that J&J holds stakes in 15 healthcare companies, with a focus on small-cap and micro-cap stocks.

The company's largest investment is in Protagonist Therapeutics (PTGX), a biotech stock with an approved product, Icotyde, for the treatment of moderate-to-severe plaque psoriasis. J&J partnered with Protagonist to commercialize the drug and currently holds around $300 million worth of shares.

Protagonist has been performing well, with its shares skyrocketing 65% year-to-date as of August 28th. The company is also in late-stage clinical testing for various other conditions, including Crohn's disease, psoriatic arthritis, and ulcerative colitis. Additionally, Protagonist is waiting to hear back from the FDA regarding rusfertide, a treatment for polycythemia vera, which could lead to another approved product.

Johnson & Johnson's investment in Protagonist Therapeutics stands out as it has already shown significant growth and has a promising pipeline of products. While biotech stocks come with inherent risks, J&J's bet on Protagonist seems like a solid one.