Protagonist Therapeutics, Inc Segments Disclosure
Note 15. Segment Reporting
Operating segments are components of an enterprise for which separate financial information is available and which are evaluated by a company’s chief operating decision maker (“CODM”), in deciding how to allocate resources and to assess performance.
The Company operates and manages its business as one operating segment, which primarily focuses on the discovery and development of innovative medicines in areas of unmet medical need. The Company’s Chief Executive Officer serves as the Company’s CODM and manages and allocates resources to the operations of the Company on an entity-wide basis. Managing and allocating resources on an entity-wide basis enables the CODM to assess the overall level of resources available and how to best deploy these resources across functions and research and development projects based on unmet medical need, scientific data, probability of technical and regulatory successful development, market potential and other considerations, and, as necessary, reallocate resources among our internal research and development portfolio and external opportunities to best support the long-term growth of our business. The Company’s CODM reviews financial information on an aggregate basis for the purpose of allocating resources and evaluating financial performance, including segment net (loss) income, which is also reported on the consolidated statement of operations as consolidated net (loss) income.
The Company derives revenues from its collaboration partners, consisting of non-refundable upfront and milestone payments and cost sharing payments under its license and collaboration agreements. The Company’s customers are comprised of its two collaboration partners, JNJ and Takeda. For the year ended December 31, 2025, Takeda accounted for 100% of the Company’s revenues. For the year ended December 31, 2024, Takeda and JNJ accounted for 62% and 38% of the Company’s revenues, respectively. For the year ended December 31, 2023, JNJ accounted for 100% of the Company’s revenues. All of the Company’s revenues for the years ended December 31, 2025, 2024 and 2023 were generated in the United States. See Note 3 to the Consolidated Financial Statements for additional information.
Segment information was as follows for the years presented (dollars in thousands):
Year Ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
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Revenue | $ | 46,016 | $ | 434,433 | $ | 60,000 | |||
Less: | |||||||||
Discovery department expense (1)(2) | (21,822) | (14,729) | (5,993) | ||||||
Development department expense (1)(2) | (65,987) | (60,944) | (65,052) | ||||||
General and administrative expenses (1) | (23,401) | (24,249) | (19,620) | ||||||
Employee wages and benefits - discovery (2) | (9,879) | (7,362) | (5,181) | ||||||
Employee wages and benefits - development (2) | (21,392) | (22,604) | (18,651) | ||||||
Employee wages and benefits - general and administrative | (15,688) | (14,148) | (9,862) | ||||||
Stock-based compensation expense | (45,974) | (37,554) | (29,293) | ||||||
Other segment items (3) | 27 | 250 | (201) | ||||||
Interest income | 28,789 | 26,315 | 14,898 | ||||||
Income tax expense | (838) | (4,220) | — | ||||||
Segment (loss) profit | $ | (130,149) | $ | 275,188 | $ | (78,955) | |||
Reconciliation of (loss) profit | |||||||||
Adjustments and reconciling items | $ | — | $ | — | $ | — | |||
Consolidated net (loss) income | $ | (130,149) | $ | 275,188 | $ | (78,955) | |||
Other segment information | |||||||||
Segment assets (4) | $ | 668,188 | $ | 744,725 | $ | 357,951 | |||
Long-lived assets (5) | $ | 11,689 | $ | 12,607 | $ | 2,149 | |||
Expenditures for long-lived assets | $ | 1,590 | $ | 1,355 | $ | 609 | |||
Depreciation expense | $ | 1,225 | $ | 894 | $ | 977 | |||
(1) Amounts exclude employee wages and benefits, stock-based compensation and expense allocations.
(2) As of April 1, 2025, the information regularly provided to the CODM was changed to reclassify pre-clinical expenses from development expense to discovery expense. Prior period segment information has been recast to reflect this change.
(3) Other segment items include foreign currency related income (expense) and other miscellaneous income (expense).
(4) The measure of segment assets is reported on the consolidated balance sheet as total assets.
(5) Long-lived assets include property and equipment, net and operating lease right-of-use asset.
The accounting policies of the Company’s operating segment are the same as those described in the summary of significant accounting policies. Substantially all of the Company’s long-lived assets are in the United States.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.