Immunovant shares surge as early antibody treatment data beats expectations
By Bhanvi Satija
(Reuters) -Shares of Immunovant more than doubled on Tuesday after early-stage data from its experimental antibody treatment exceeded analysts' expectations.
The drug developer, whose shares hit a more than two-and-a-half year high of $41.72, was set to add nearly $3 billion to its market capitalization if gains hold.
Immunovant is developing its antibody drug, IMVT-1402, as an under-the-skin injection to potentially treat autoimmune diseases.
The early data hit a "home-run" scenario, said J.P. Morgan analyst Brian Cheng, adding that it supports the drug's potential to be the best in its class if it succeeds in later studies.
IMVT-1402 belongs to a class of treatments for autoimmune diseases that work by targeting the tail region of an antibody and help activate the immune system.
The drug is expected to compete with treatments from drugmakers Johnson & Johnson and UCB, that are currently under development.
Rival drugmaker argenx's Vyvgart Hytrulo is approved in the United States to treat a muscle-weakening genetic disease.
Immunovant's experimental drug reduced the levels of IgG, or immunoglobulin antibodies, that cause inflammation and disease in healthy adults.
Data from a higher dose part of the study, expected in November, could make Immunovant "a compelling potential takeout" for large pharma acquirers who may be interested, TD Cowen analyst Yaron Werber said.
The data showed IMVT-1402 was generally safe in the study and did not decrease a plasma protein found in the blood known as serum albumin in adults after four weeks of treatment, which was observed in Immunovant's other drug batoclimab.
Shares of Roivant Sciences, Immunovant's largest shareholder with a 56.5% stake, according to LSEG data, also rose 24.2% to $12.68.
The positive data from IMVT-1402 could give Roivant another "potentially blockbuster" candidate to transact, after its experimental treatment for bowel disease, Jefferies analyst Dennis Ding said.
Immunovant's price to tangible book value ratio, a common benchmark for valuing stocks, stood at 8.83 compared with rival argenx's 10.68.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Krishna Chandra Eluri and Shounak Dasgupta)
