Protagonist Therapeutics: A Promising Healthcare Stock for Long-Term Investment

Last updated Mar 16, 2025

TL/DR –

The article analyzes Protagonist Therapeutics, Inc. and its standing among the best healthcare stocks for long-term investment. The article notes the increasing healthcare expenditures in the US, with spending increasing 7.5% from 2022 to $4.9 trillion in 2023. The impact of tariffs on the healthcare sector and China’s vast influence in healthcare research and development is also discussed, along with how the US lacks infrastructure to transfer healthcare corporations’ externalized R&D and production. Protagonist Therapeutics, Inc. is analyzed, with its work in peptide-based therapies, strategic partnerships, and strong financial condition being highlighted.

Analysis of Protagonist Therapeutics, Inc. Against Other Top Healthcare Stocks

We recently highlighted the 10 Best Healthcare Stocks For Long-Term Investment. Now, we are focusing on evaluating Protagonist Therapeutics, Inc. (NASDAQ:PTGX) against these top healthcare stocks for long-term investing.

Trends in US Healthcare Expenditure and Impact of Tariffs

US healthcare expenditure has been on the rise, growing 7.5% to $4.9 trillion in 2023, according to the Centers for Medicare & Medicaid Services. This trend is being driven by the expansion of Medicare and commercial health insurance. Furthermore, tariffs have become a significant contention in the healthcare sector, which is increasing trade with China.

China’s Role in the Healthcare Sector

China serves as a significant hub for the US healthcare sector, particularly for contract production and research. Versant Ventures managing director Carlo Rizzuto discussed how tariffs could affect the sector on CNBC’s “Fast Money”. Rizzuto emphasized that reshoring all externalized R&D and production to the US would be challenging due to the lack of infrastructure.

Projected Growth in Healthcare EBITDA According to McKinsey

McKinsey projects healthcare EBITDA to increase from $676 billion in 2023 to $987 billion in 2028, growing at a 7% CAGR. Technological innovation like generative AI and machine learning are continually unlocking opportunities across all segments of the healthcare sector.

Our Methodology for Stock Selection

We used a Finviz screener to select stocks with a market cap of over 2 billion, a 5-year annual return of over 10%, and a low PE ratio under 20. We then ranked the stocks based on the total number of their hedge fund holders as of Q4 2024. Our research has shown that imitating the top stock picks of the best hedge funds can outperform the market (see more details here).

Is Protagonist Therapeutics, Inc. (PTGX) the Best Healthcare Stock for Long-Term Investment?

Protagonist Therapeutics, Inc. (NASDAQ:PTGX) specializes in peptide-based therapies for blood disorders and inflammatory diseases. It has strategic partnerships with Takeda Pharmaceutical and Johnson & Johnson, resulting in significant upfront and milestone payments. Despite its promising growth potential, PTGX ranks 8th on our list of best healthcare stocks for long-term investment. For investors interested in AI stocks, we recommend checking out our report on the cheapest AI stock.