Immunovant shares surge after antibody treatment succeeds in early-stage study (updated)

Immunovant

26/09/2023 13:57

(Adds analyst comment in paragraphs 5 and 9, details on
competition and drug in paragraphs 3,4, updates shares)
       Sept 26 (Reuters) - Shares of Immunovant  IMVT.O  surged
over 60% in premarket trading on Tuesday, after data from an
early-stage study showed the drug developer's experimental
treatment helped reduce levels of an inflammation-causing
antibody in healthy adults. 
    The company is developing its antibody drug, IMVT-1402, as
an under-the-skin injection to potentially treat autoimmune
diseases. 
    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.
    Drugmakers Johnson & Johnson  JNJ.N , argenx  ARGX.BR  and
UCB  UCB.BR  are also developing treatments belonging to the
same class.
    The data supports "best case scenario" and the drug has the
potential to be the best in its class, said Truist Securities
analyst Robyn Karnauskas.
    Immunovant's experimental drug reduced the levels of IgG, or
immunoglobulin antibodies, that cause inflammation and disease
in healthy adults. The drug also did not decrease the levels of
a plasma protein found in the blood known as serum albumin in
adults. 
    The drug showed potency similar to or greater than
Immunovant's other experimental drug, batoclimab, which is being
developed for autoimmune diseases myasthenia gravis and Graves'
disease. 
    Shares of Roivant Sciences  ROIV.O , Immunovant's largest
shareholder with a 56.5% stake, according to LSEG data, also
rose 15% to $11.60 before the bell. 
    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 wrote in a note. 
    Based on last close, Immunovant shares have risen 14.3% so
far this year, giving it a market capitalization of $2.65
billion, according to LSEG data.
    The New York-based drug developer'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)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))