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Immunovant's Q2 Loss Wider Than Expected, Pipeline in Focus

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Key Takeaways

  • IMVT reported a Q2 loss of $0.73 per share, slightly wider than the year-ago and consensus figures.
  • R&D expenses rose 17.4% on higher costs tied to IMVT-1402 studies and contract manufacturing.
  • IMVT expects its $521.9M cash balance to fund clinical programs, including IMVT-1402 and batoclimab.

Immunovant, Inc. (IMVT - Free Report) reported second-quarter fiscal 2026 net loss of 73 cents per share, wider than the Zacks Consensus Estimate of a loss of 72 cents. In the year-ago quarter, the company reported a loss of 74 cents per share.

Excluding stock-based compensation expense, IMVT reported a net loss of 65 cents per share.

Currently, Immunovant does not have any approved product in its portfolio. As a result, it is yet to generate revenues.

Immunovant, Inc. Price, Consensus and EPS Surprise

Immunovant, Inc. Price, Consensus and EPS Surprise

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

IMVT’s Q2 Results in Detail

Research and development expenses totaled $114.2 million, up 17.4% from the year-ago quarter’s figure. The increase was mainly due to activities related to the clinical studies of IMVT-1402, including contract manufacturing costs and increased personnel-related expenses.

General and administrative expenses amounted to $17.5 million, down 5.1% year over year mostly due to the streamlining of administrative processes to drive effective cost management strategies.

As of Sept. 30, 2025, Immunovant’s cash and cash equivalents totaled approximately $521.9 million compared with $598.9 million as of June 30, 2025. IMVT expects its cash runway to fund clinical activities through 2027.

Year to date, Immunovant shares have lost 5.7% against the industry’s 11.1% gain.

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Image Source: Zacks Investment Research

Key Pipeline Updates of IMVT

Immunovant has designated IMVT-1402, a next-generation FcRn inhibitor, as its lead asset going forward, given its broad potential across multiple indications.

IMVT is on track with the development of IMVT-1402 across six disclosed indications, including potentially registrational studies in Graves’ disease (GD), difficult-to-treat rheumatoid arthritis (D2T RA), myasthenia gravis (MG), chronic inflammatory demyelinating polyneuropathy (CIDP), and Sjögren’s disease (SjD) as well as a proof-of-concept trial in cutaneous lupus erythematosus (CLE).

Immunovant expects to report results from the open-label portion of the potentially registrational trial of IMVT-1402 in D2T RA, as well as top-line results from the proof-of-concept trial of IMVT-1402 in CLE, in 2026.

Immunovant is also evaluating a second candidate, batoclimab, in ongoing mid-late-stage studies for two different autoimmune indications, GD and thyroid eye disease (TED). Batoclimab is a fully human monoclonal antibody targeting FcRn.

In September, IMVT announced new six-month off-treatment results from a proof-of-concept study evaluating its investigational candidate, batoclimab, in patients with uncontrolled GD.

Data readout from Immunovant’s proof-of-concept study showed sustained benefits during the off-treatment period. Of the 21 patients who entered the off-treatment period, approximately 80% (17/21) demonstrated response, resulting in normal thyroid function (T3 and T4 less than the upper limit of normal) at the end of the six-month follow-up period.

Immunovant remains on track for the first of the two-phase III TED studies on batoclimab to read out before the end of the year. However, due to evolving competitive dynamics, IMVT anticipates sharing top-line results from both TED studies in the first half of 2026.

IMVT’s Zacks Rank and Stocks to Consider

Immunovant currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Alkermes (ALKS - Free Report) , Amicus Therapeutics (FOLD - Free Report) , and CorMedix (CRMD - Free Report) , each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkermes’ EPS estimates for 2025 have increased to $1.96 from $1.82, while those for 2026 have risen from $1.70 to $1.77 in the past 30 days. The stock has gained 13.6% year to date.

Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 4.58%.

In the past 60 days, estimates for Amicus Therapeutics’ 2025 EPS have inched up to 32 cents from 31 cents. During the same time, EPS estimates for 2026 have decreased to 68 cents from 69 cents. Year to date, shares of FOLD have lost 4.4%.

In the past 60 days, estimates for CorMedix’s EPS have increased from $1.24 to $1.85 for 2025. During the same time, EPS estimate for 2026 has increased to $2.49 from $2.08. Year to date, shares of CRMD have rallied 36.7%.

CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.85%.

 

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