Protagonist Therapeutics Spikes Sharply After Agreement With Janssen

Protagonist Therapeutics Inc(NASDAQ: PTGX) shares are trading higher by $3.54 — over 43 percent — at $11.76 in Tuesday's session. Investors are aggressively purchasing shares of the company following the announcement that the company has entered a agreement with Janssen to co-develop and commercialize PTG-200 for the treatment of Crohn's disease.

In addition to the upfront payment of $50 million, the company could receive up to an additional $940 million in development, regulatory and sales milestones.

In a volatile session, the issue ripped to $14.85, before reversing course and falling hard. That high coincides with its March 8 high of $14.77.

Since reaching that elevated level, profit-takers have swarmed the issue, and it continues to make new low on the day. So far, it has $11.12 and is not far off that low as of 10:42 a.m. EST. In order to fill the void in price and reach the upper-end of Friday's session, it would need to reach $8.55.