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Immunovant (IMVT) Up More Than 20% in Past 3 Months: Here's Why

Shares of Immunovant, Inc. IMVT have rallied 27% in the past three months against the industry’s decrease of 4.1%.

The company has made good progress during this period with the development of its lead pipeline candidate, batoclimab (formerly IMVT-1401), which is being developed for the treatment of several autoimmune diseases.

Batoclimab is a fully human, monoclonal antibody that selectively binds to and inhibits neonatal fragment crystallizable receptor (FcRn). The candidate is being developed as a subcutaneous injection for the treatment of myasthenia gravis (“MG”), warm autoimmune hemolytic anemia (“WAIHA”) and thyroid eye disease (“TED”). IMVT is making rapid progress in the batoclimab’s development this year.

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Zacks Investment Research

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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.

During the same time, the company also achieved alignment with the FDA’s Division of Ophthalmology to initiate two phase III studies evaluating batoclimab for treating TED. Both studies are expected to begin in the second half of 2022. Top-line data from both are expected in the first half of 2025.

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

IMVT plans to evaluate potential new indications for batoclimab and has plans to announce two new indications later this week.

We note that batoclimab, if approved, may face competition from other approved drugs for TED, WAIHA or MG.

Horizon Therapeutics’ HZNP Tepezza, an anti-IGF-1R antibody, is approved for the treatment of TED.

Horizon is evaluating Tepezza in several label expansion studies. The drug has been one of the key top-line drivers for HZNP since its approval.

In the absence of a marketed drug, the successful development of batoclimab remains the main focus of Immunovant. There is only one candidate in development in its pipeline. Batoclimab is still in late-stage development and is still a few years away from commercialization. Any developmental setback for batoclimab will be a major setback for the company, leaving an adverse impact on its shares.

Immunovant, Inc. Price and Consensus

Immunovant, Inc. Price and Consensus
Immunovant, Inc. Price and Consensus

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

Zacks Rank & Stocks to Consider

Immunovant currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Achilles Therapeutics plc ACHL and Atara Biotherapeutics, Inc. ATRA, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Achilles Therapeutics’ loss per share estimates narrowed 6.4% for 2022 and 9.6% for 2023 in the past 60 days.

Earnings of Achilles Therapeutics surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. ACHL delivered an earnings surprise of 12.45%, on average.

Atara Biotherapeutics’ loss per share estimates narrowed 43.2% for 2022 and 31.8% for 2023 in the past 60 days.

Earnings of Atara Biotherapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. ATRA delivered an earnings surprise of 4.83%, on average.

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