Johnson & Johnson's Biotech Betting Big on Protagonist Therapeutics

Johnson & Johnson is one of the world's largest healthcare companies by market cap. Recent filings reveal that it owns stakes in 15 biotech and medtech stocks.

The holdings include small-cap, micro-cap, and nano-cap stocks. Notably, Protagonist Therapeutics stands out as J&J's most heavily invested stock, with a stake worth roughly $300 million.

Protagonist has an approved product called Icotyde for treating moderate-to-severe plaque psoriasis, which was discovered in collaboration between the two companies. The FDA is also reviewing another drug, rusfertide, for the treatment of polycythemia vera. Protagonist has a promising pipeline and a solid financial position.

Shares have skyrocketed 65% year-to-date as of August 28. Wall Street analysts are bullish on the stock, but there's always a risk of pipeline setbacks or commercialization challenges.