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Immunovant's (IMVT) Q2 Earnings In Line, Batoclimab in Focus

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Immunovant, Inc. (IMVT - Free Report) reported a net loss of 41 cents per share for the second quarter of fiscal 2023 (ended Sep 30, 2022), in line with the Zacks Consensus Estimate. In the year-ago fiscal quarter, management had reported a loss of 35 cents.

Currently, IMVT does not have any approved product in its portfolio. As a result, it is yet to generate revenues.

Shares of Immunovant have rallied 41.5% in the year so far against the industry’s decrease of 21.5%.

Zacks Investment Research
Image Source: Zacks Investment Research

Quarter in Detail

In the reported fiscal quarter, research and development (R&D) expenses were $37.7 million, up 76.1% from the year-ago fiscal quarter’s figure. The year-over-year surge was due to increased personnel-related expenses, and higher development costs related to the batoclimab program and IMVT-1402.

General and administrative (G&A) expenses were $11.9 million in the reported quarter, down 27% on a year-over-year basis. The decrease was on lower financial advisory, and legal and other professional costs.

As of Sep 30, 2022, Immunovant had a cash balance of $405.7 million compared with $427.2 million as of Jun 30, 2022.

With its existing cash balance, IMVT expects to fund its operating expenses and capital expenditure requirements into the second half of 2025.

Pipeline Update

Immunovant is developing its lead pipeline candidate batoclimab as a subcutaneous injection to treat myasthenia gravis (MG) and thyroid eye disease (TED).

In September 2022, IMVT announced that it plans to develop batoclimab for two new indications, namely Chronic Inflammatory Demyelinating Polyneuropathy and Graves’ Disease.

IMVT is looking to initiate a pivotal phase IIb study to evaluate batoclimab for treating Chronic Inflammatory Demyelinating by 2022 end. Management also plans to start another phase II study on batoclimab to treat Graves’ disease in early 2023.

In June 2022, Immunovant initiated a pivotal study evaluating batoclimab for the treatment of MG. Top-line data from the same is expected in the second half of 2024.

Immunovant has achieved alignment with the FDA’s Division of Ophthalmology to initiate two phase III studies for evaluating batoclimab to treat TED. Both studies are progressing well. Top-line data from both is expected in the first half of 2025.

IMVT also plans to initiate a placebo-controlled study on batoclimab for treating WAIHA. The study is contingent on discussions with the hematology division of the FDA, which are expected to take place later in 2022.

Immunovant, Inc. Price, Consensus and EPS Surprise

Immunovant, Inc. Price, Consensus and EPS Surprise

Immunovant, Inc. price-consensus-eps-surprise-chart | Immunovant, Inc. Quote

Zacks Rank & Stocks to Consider

Immunovant currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Akero Therapeutics, Inc. (AKRO - Free Report) , Amarin Corporation plc (AMRN - Free Report) and Atea Pharmaceuticals, Inc. (AVIR - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Loss per share estimates for Akero Therapeutics have narrowed 6.3% for 2022 and 0.3% for 2023 in the past 60 days.

Earnings of Akero Therapeutics surpassed estimates in two of the trailing four quarters and missed the same on the remaining two occasions. AKRO witnessed a negative earnings surprise of 4.62%, on average.

Loss per share estimates for Amarin have narrowed 21% for 2022 and 50% for 2023 in the past 60 days.

Earnings of Amarin surpassed estimates in two of the trailing four quarters and missed the same on the other two occasions. AMRN witnessed a negative earnings surprise of 14.29%, on average.

Loss per share estimates for Atea Pharmaceuticals have narrowed 4.6% for 2022 and 1.9% for 2023 in the past 60 days.

Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed the mark on the remaining occasion. AVIR witnessed a negative earnings surprise of 58.74%, on average.


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