Icotrokinra, an oral interleukin-23 antagonist peptide being developed by Protagonist Therapeutics (PTGX) under an exclusive license to Johnson & Johnson (JNJ), shows potential in targeting a wide spectrum of autoimmune indications, Wedbush Securities said in a Wednesday note.

The brokerage said comments from a guest speaker at a key opinion leaders event suggested that icotrokinra's IL-23-targeting mechanism of action, safety, and once-daily oral convenience are its differentiating factors in inflammatory bowel disease therapy, while durability will need to be confirmed.

IL-23 agents are gaining momentum as front-line therapy for inflammatory bowel disease due to durable treatment effect and better-than-placebo safety without anti-drug antibody development, according to key opinion leaders, Wedbush said.

The firm further said it believed icotrokinra as an oral therapy should fit well into a combination regimen, with key opinion leaders noting that combination therapy, including an IL-23 agent as a "platform drug," is already being used to treat highly refractory patients.

A phase 2b/3 study in Crohn's disease and a phase 3 study in ulcerative colitis are already recruiting patients, according to the note.

Wedbush has an outperform rating and a $70 price target on the stock.

Price: 189.77, Change: +0.88, Percent Change: +0.47