What happened
Shares of Immunovant (IMVT -2.09%) were up more than 96% as of 3 p.m. on Tuesday. The clinical-stage immunology company, a unit of Roivant Sciences, announced positive trial information on an autoimmune disorder therapy. Roivant's shares were up more than 22% on the news as well.
So what
Immunovant focuses on autoimmune disorders. The company said on Tuesday, before the markets opened, that IMVT-1402, in a phase 1 trial, using subcutaneous doses, achieved peak immunoglobulin G (IgG) reductions that were similar to those observed with batoclimab, which is another of Immunovant's pipeline candidates. The key difference is that IMVT-1402 didn't create a rise in bad LDL cholesterol, which was a problem with batoclimab.
Now what
Immunovant doesn't have approved therapies yet and no revenue. As of the second quarter, the company said it had roughly $330 million in cash, enough to fund operations into the second half of 2025.
The latest news means that IMVT-1402 has the potential to be a best-in-class therapy for a multitude of autoimmune disorders, including rheumatoid arthritis, myasthenia gravis (an autoimmune disorder that affects skeletel muscles), and chronic inflammatory demyelinating polyneuropathy (CIDP). In all, the company has its eye on 22 indications for its FcRn class of drugs. One advantage that IMVT-1402 may hold is its subcutaneous dose makes it easier to be self-administered by patients.
Analysts' opinions of the stock rose on the news. Truist Financial began coverage of the stock on Tuesday with a price target of $30, and Raymond James upgraded its position to outperform on the stock with a price target of $40 on Tuesday.
