What happened

Shares of Roivant Sciences (ROIV 0.94%) were up more than 11% by 3 p.m. ET on Wednesday after the pharmaceutical company that specializes in smaller portfolio companies, called vants, released fourth-quarter and 2023 fiscal-year earnings. The stock is up more than 26% so far this year.

So what

Roivant reported fourth-quarter revenue of $27.4 million, up 197% year over year, and an earnings per share (EPS) loss of $0.05, compared to an EPS loss of $0.39 in the same period a year ago. The improved EPS is really what propelled the stock higher.

Yearly revenue was up as well, with the company reporting 2023 revenue of $61.3 million, up 10.8%, while EPS was listed as a loss of $1.42, compared to an EPS loss of $1.26 in fiscal 2022.

Roivant's leading therapy, Vtama (tapinarof), had yearly revenue of $28 million. The plaque psoriasis cream was launched last year after getting approval in May from the Food and Drug Administration (FDA). And the company says it expects to submit its supplemental New Drug Application to the FDA for the therapy to treat atopic dermatitis early next year. 

The company also focused more on its potential launches. It announced that monoclonal antibody RVT-3101 showed efficacy in a phase 2b study to treat ulcerative colitis, and that a phase 2 study of RVT-3101 to treat Crohn's disease has begun, with topline results expected late in 2024.

Now what

Roivant has gone from a clinical-stage company to a commercial one in just over two years and seems to be making the transition well. While it isn't profitable yet, it is getting closer. The company also appears to have several more therapies that could break through as early as next year.