Protagonist Therapeutics (PTGX) exercised its right to opt out of the 50/50 US profit and loss sharing arrangement under its global license and collaboration agreement with Takeda Pharmaceutical (TAK) for rusfertide, Protagonist Therapeutics said Tuesday.

As a result, Protagonist Therapeutics will be eligible to receive up to $400 million in opt-out payments.

The company will also be entitled to a $75 million milestone payment upon rusfertide's approval in the US and up to $975 million in other milestone payments and tiered royalties on net sales, according to the statement.

Takeda Pharmaceutical now holds exclusive development and commercialization rights to rusfertide in the US.

Rusfertide is under FDA Priority Review in the US for the treatment of adult patients with polycythemia vera, Protagonist Therapeutics said.

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