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Immunovant (IMVT) Loss Narrows in Q1, Focus on Batoclimab
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Immunovant, Inc. (IMVT - Free Report) reported a net loss of 35 cents per share in the first quarter of fiscal 2023 (ended Jun 30, 2022), narrower than the Zacks Consensus Estimate of a loss of 40 cents. In the year-ago quarter, the company had reported a loss of 31 cents.
Currently, the company does not have any approved products in its portfolio. As a result, it is yet to generate revenues.
Shares of Immunovant were up 8.7% on Friday following the announcement of the earnings results. The stock has plunged 44.1% in the year compared with the industry’s decrease of 17.8%.
Image Source: Zacks Investment Research
Quarter in Detail
In the reported quarter, research and development (R&D) expenses were $28.4 million, up 51.8% from the year-ago quarter. The year-over-year surge was due to increased personnel-related expenses, higher costs of cross-indication clinical studies and clinical research costs.
General and administrative (G&A) expenses were $11.9 million in the reported quarter, up 6.3% on a year-over-year basis. The uptick was primarily due to increased personnel-related expenses as well as other professional costs.
As of Jun 30, 2022, the company had a cash balance of approximately $427 million compared with $493.8 million as of Mar 31, 2022.
With its existing cash balance, IMVT expects to fund its operating expenses and capital expenditure requirements through 2025.
Pipeline Update
Immunovant is developing its lead pipeline candidate, batoclimab, as a subcutaneous injection for the treatment of myasthenia gravis (“MG”) and thyroid eye disease (“TED”).
In June 2022, the company 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 period, Immunovant also achieved alignment with the FDA’s Division of Ophthalmology to initiate two placebo-controlled phase III studies evaluating batoclimab for treating TED. Both these studies are expected to begin in the second half of 2022. Top-line data from both studies are expected in the first half of 2025.
In the absence of a marketed drug, the successful development of batoclimab remains the main focus of the company.
Beam Therapeutics’ loss per share estimates narrowed 0.7% for 2022 and 0.8% for 2023 in the past 60 days.
Earnings of Beam Therapeutics have surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. BEAM delivered an earnings surprise of 1.80%, on average.
Atara Biotherapeutics’ loss per share estimates narrowed 0.6% for 2022 and 13.3% for 2023 in the past 60 days.
Earnings of Atara Biotherapeutics have surpassed estimates in two of the trailing four quarters and missed on the other two occasions. ATRA delivered an earnings surprise of -12.51%, on average.
Geron loss per share estimates narrowed 2.7% for 2022 and 7.9% for 2023 in the past 60 days.
Earnings of Geron have surpassed estimates in two of the trailing four quarters, met once and missed on the other occasion. GERN delivered an earnings surprise of 1.07%, on average.
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Immunovant (IMVT) Loss Narrows in Q1, Focus on Batoclimab
Immunovant, Inc. (IMVT - Free Report) reported a net loss of 35 cents per share in the first quarter of fiscal 2023 (ended Jun 30, 2022), narrower than the Zacks Consensus Estimate of a loss of 40 cents. In the year-ago quarter, the company had reported a loss of 31 cents.
Currently, the company does not have any approved products in its portfolio. As a result, it is yet to generate revenues.
Shares of Immunovant were up 8.7% on Friday following the announcement of the earnings results. The stock has plunged 44.1% in the year compared with the industry’s decrease of 17.8%.
Image Source: Zacks Investment Research
Quarter in Detail
In the reported quarter, research and development (R&D) expenses were $28.4 million, up 51.8% from the year-ago quarter. The year-over-year surge was due to increased personnel-related expenses, higher costs of cross-indication clinical studies and clinical research costs.
General and administrative (G&A) expenses were $11.9 million in the reported quarter, up 6.3% on a year-over-year basis. The uptick was primarily due to increased personnel-related expenses as well as other professional costs.
As of Jun 30, 2022, the company had a cash balance of approximately $427 million compared with $493.8 million as of Mar 31, 2022.
With its existing cash balance, IMVT expects to fund its operating expenses and capital expenditure requirements through 2025.
Pipeline Update
Immunovant is developing its lead pipeline candidate, batoclimab, as a subcutaneous injection for the treatment of myasthenia gravis (“MG”) and thyroid eye disease (“TED”).
In June 2022, the company 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 period, Immunovant also achieved alignment with the FDA’s Division of Ophthalmology to initiate two placebo-controlled phase III studies evaluating batoclimab for treating TED. Both these studies are expected to begin in the second half of 2022. Top-line data from both studies are expected in the first half of 2025.
In the absence of a marketed drug, the successful development of batoclimab remains the main focus of the company.
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 include Beam Therapeutics Inc. (BEAM - Free Report) , Atara Biotherapeutics, Inc. (ATRA - Free Report) and Geron Corporation (GERN - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beam Therapeutics’ loss per share estimates narrowed 0.7% for 2022 and 0.8% for 2023 in the past 60 days.
Earnings of Beam Therapeutics have surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. BEAM delivered an earnings surprise of 1.80%, on average.
Atara Biotherapeutics’ loss per share estimates narrowed 0.6% for 2022 and 13.3% for 2023 in the past 60 days.
Earnings of Atara Biotherapeutics have surpassed estimates in two of the trailing four quarters and missed on the other two occasions. ATRA delivered an earnings surprise of -12.51%, on average.
Geron loss per share estimates narrowed 2.7% for 2022 and 7.9% for 2023 in the past 60 days.
Earnings of Geron have surpassed estimates in two of the trailing four quarters, met once and missed on the other occasion. GERN delivered an earnings surprise of 1.07%, on average.