Protagonist Therapeutics (PTGX) received further validation for its oral peptide platform with the US Food Drug Administration approval of Icotyde as treatment for psoriasis, Wedbush Securities said in a note Thursday.

The investment firm said the regulatory approval was expected after Protagonist and partner Johnson & Johnson (JNJ), which holds global rights to commercialize Icotyde, reported "compelling" phase 3 results.

Wedbush said it made adjustments based on what it sees as a "favorable label," and now models a target population of patients 12 years and older while increasing its market penetration forecast for Icotyde.

Icotyde's approval is expected to positively impact Protagonist's other clinical programs, which are already attracting "strong" partnership interest, according to the note.

Wedbush raised its price target to $112 from $100, and reiterated its outperform rating on the stock.

Protagonist shares were up 7.6% in midday trading Thursday.

Price: 104.50, Change: +7.41, Percent Change: +7.63