We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Immunovant (IMVT) Reports Wider-Than-Expected Loss in Q1
Read MoreHide Full Article
Immunovant, Inc. (IMVT - Free Report) reported a net loss of 31 cents per share in the first quarter of fiscal 2022 (ended Jun 30, 2021), wider than the Zacks Consensus Estimate of a loss of 30 cents. In the year-ago quarter, the company reported a loss of 38 cents.
Currently, the company does not have any approved product in its portfolio. As a result, it is yet to generate revenues.
Shares of Immunovant have plunged 83.1% so far this year against the industry’s increase of 1.8%.
Image Source: Zacks Investment Research
Quarter in Detail
In the reported quarter, research and development (R&D) expenses were $18.7 million, up 10.6% from the year-ago quarter. The year-over-year increase was attributable to personnel-related expenses and higher costs related to clinical activities.
General and administrative (G&A) expenses were $11.2 million in the reported quarter, up 15.4% on a year-over-year basis. The increase was primarily due to higher personnel costs and stock-based compensation expenses resulting from higher headcount.
As of Jun 30, 2021, the company had cash balance of approximately $379 million compared with $400 million as at Mar 31, 2021.
Pipeline Update
Immunovant is developing its lead pipeline candidate – IMVT-1401 – with an initial focus on the treatment of myasthenia gravis (“MG”), thyroid eye disease (“TED”) and warm autoimmune hemolyticanemia (“WAIHA”).
The company plans to begin a pivotal study evaluating IMVT-1401 for treating MG in 2022. Last month, the FDA granted an Orphan Drug designation to IMVT-1401 for treatment of MG.
Immunovant plans to resume the development of IMVT-1401 for WAIHA and TED in the next 12 months. The company also plans to initiate at least two additional clinical studies over the next 12 months, including another pivotal study next year.
In February 2021, the company voluntarily paused dosing in ASCEND GO-2 – a phase IIb study in TED, and in ASCEND-WAIHA – a phase II study on IMVT-1401 in WAIHA due to elevated total cholesterol and LDL levels observed in patients who were treated with IMVT-1401.
We note that Johnson & Johnson (JNJ - Free Report) is developing nipocalimab in WAIHA, generalized MG and other rare diseases.
Earlier this month, Immunovant received a $200-million strategic investment from Roivant Sciences. The company plans to use the proceeds for the development of IMVT-1401 in multiple indications.
Immunovant, Inc. Price, Consensus and EPS Surprise
Repligen’s earnings estimates have been revised 19% upward for 2021 and 14.8% upward for 2022 over the past 60 days. The stock has rallied 33.3% year to date.
Spero Therapeutics’ loss per share estimates have narrowed by 1% for 2021 and 2% for 2022 over the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Immunovant (IMVT) Reports Wider-Than-Expected Loss in Q1
Immunovant, Inc. (IMVT - Free Report) reported a net loss of 31 cents per share in the first quarter of fiscal 2022 (ended Jun 30, 2021), wider than the Zacks Consensus Estimate of a loss of 30 cents. In the year-ago quarter, the company reported a loss of 38 cents.
Currently, the company does not have any approved product in its portfolio. As a result, it is yet to generate revenues.
Shares of Immunovant have plunged 83.1% so far this year against the industry’s increase of 1.8%.
Image Source: Zacks Investment Research
Quarter in Detail
In the reported quarter, research and development (R&D) expenses were $18.7 million, up 10.6% from the year-ago quarter. The year-over-year increase was attributable to personnel-related expenses and higher costs related to clinical activities.
General and administrative (G&A) expenses were $11.2 million in the reported quarter, up 15.4% on a year-over-year basis. The increase was primarily due to higher personnel costs and stock-based compensation expenses resulting from higher headcount.
As of Jun 30, 2021, the company had cash balance of approximately $379 million compared with $400 million as at Mar 31, 2021.
Pipeline Update
Immunovant is developing its lead pipeline candidate – IMVT-1401 – with an initial focus on the treatment of myasthenia gravis (“MG”), thyroid eye disease (“TED”) and warm autoimmune hemolyticanemia (“WAIHA”).
The company plans to begin a pivotal study evaluating IMVT-1401 for treating MG in 2022. Last month, the FDA granted an Orphan Drug designation to IMVT-1401 for treatment of MG.
Immunovant plans to resume the development of IMVT-1401 for WAIHA and TED in the next 12 months. The company also plans to initiate at least two additional clinical studies over the next 12 months, including another pivotal study next year.
In February 2021, the company voluntarily paused dosing in ASCEND GO-2 – a phase IIb study in TED, and in ASCEND-WAIHA – a phase II study on IMVT-1401 in WAIHA due to elevated total cholesterol and LDL levels observed in patients who were treated with IMVT-1401.
We note that Johnson & Johnson (JNJ - Free Report) is developing nipocalimab in WAIHA, generalized MG and other rare diseases.
Earlier this month, Immunovant received a $200-million strategic investment from Roivant Sciences. The company plans to use the proceeds for the development of IMVT-1401 in multiple indications.
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 Repligen Corporation (RGEN - Free Report) and Spero Therapeutics, Inc. (SPRO - Free Report) , 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.
Repligen’s earnings estimates have been revised 19% upward for 2021 and 14.8% upward for 2022 over the past 60 days. The stock has rallied 33.3% year to date.
Spero Therapeutics’ loss per share estimates have narrowed by 1% for 2021 and 2% for 2022 over the past 60 days.