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Immunovant's Q2 Loss Wider Than Expected, Pipeline in Focus

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Immunovant, Inc. (IMVT - Free Report) reported second-quarter fiscal 2025 net loss of 74 cents per share, wider than the Zacks Consensus Estimate of a loss of 61 cents. The reported figure is also wider than the year-ago quarter's loss of 45 cents per share.

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

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IMVT’s Q3 Results in Detail

Research and development (R&D) expenses totaled $97.3 million, up 103% from the year-ago quarter’s figure. The massive uptick can be attributed to activities in preparation for potential future clinical studies of IMVT-1402, including contract manufacturing costs for drug substance, higher overall clinical study costs related to batoclimab development programs and increased personnel-related expenses.

General and administrative expenses amounted to $18.5 million, up 33% on a year-over-year basis. The rise was primarily due to an increase in personnel-related expenses, legal and other professional fees, along with information technology costs.

As of Sept. 30, 2024, Immunovant had a cash balance of $472.9 million compared with $560 million as of June 30, 2023.

IMVT’s Key Pipeline Updates

Immunovant has crowned IMVT-1402,a next-generation FcRn inhibitor, as the lead asset going forward given its broad potential across several indications.

The company is on track to initiate four to five potentially registrational programs for IMVT-1402 over the next fiscal year (ending March 31, 2025). Over the next two fiscal years, the company plans to initiate studies in a total of 10 indications for IMVT-1402. The company also expects to achieve financial efficiencies in its IMVT-1402 development program by leveraging the data already available from batoclimab studies.

The broad set of late-stage studies expected to be initiated for IMVT-1402 will include several indications, including Graves’ disease (GD), Myasthenia Gravis (MG) and Chronic Inflammatory Demyelinating Polyneuropathy (CIDP).

Year to date, shares of Immunovant have plunged 29% compared with the industry’s 1.4% decline.

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Immunovant is evaluating its second candidate, batoclimab, in several ongoing mid-late-stage studies across different autoimmune indications, including GD, MG, CIDP and thyroid eye disease (TED).

In September, the company announced positive data from the mid-stage study on, batoclimab, which is being developed for GD. Leveraging the encouraging results from the phase IIa GD study ofbatoclimab, Immunovant is currently gearing up to initiate a pivotal study of IMVT-1402 for the same indication by the end of 2024.

Top-line results from the MG study of batoclimab are expected by the end of this fiscal year (March 31, 2025).

IMVT may also transition its batoclimab CIDP study to a registrational CIDP program with IMVT-1402. The company believes that the data from the ongoing batoclimab CIDP study will substantially benefit the design of a potentially registrational study with IMVT-1402 for the same indication. Top-line data from the phase IIb study of batoclimab for CIDP is expected by March 31, 2025.

Furthermore, the company is also scheduled to share top-line data from the late-stage TED study of batoclimab in the second half of 2025.

IMVT’s Zacks Rank and Stocks to Consider

Immunovant currently carries a Zacks Rank #3 (Hold).

Some better-ranked pharma stocks are Allogene Therapeutics (ALLO - Free Report) , Biogen (BIIB - Free Report) and Novartis (NVS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allogene Therapeutics’ loss estimates have remained constant at $1.41 per share for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.45 per share. ALLO’s shares have lost 0.6% year to date.

Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 9.42%.

Biogen’s earnings estimates have risen from $16.12 to $16.37 per share for 2024 over the past 60 days, while that for 2025 has increased from $17.09 to $17.15. BIIB’s shares have lost 32.8% year to date.

Biogen’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.99%.

Novartis’ earnings estimates have risen from $7.50 to $7.56 per share for 2024 over the past 60 days, while that for 2025 has increased from $8.30 to $8.33. NVS’ shares have risen 6.1% year to date.

Novartis’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.22%.

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