Immunovant (IMVT) Second Quarter Online Earnings, Batoclimab In Focus – Nov 7, 2022

Immunovant (IMVT) Second Quarter Online Earnings, Batoclimab In Focus – Nov 7, 2022

Immunovant, Inc. (IMVT Free Report) reported a net loss of 41 cents per share for the second quarter of fiscal 2023 (ended September 30, 2022), in line with the Zacks Consensus Estimate. In the fiscal quarter of the prior year, management had reported a loss of 35 cents.

Currently, IMVT does not have any approved products in its portfolio. As a result, it has not yet generated income.

Immunovant shares are up 41.5% year-to-date vs. industry‘s decrease of 21.5%.

Zacks Investment Research
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quarter in detail

In the reported fiscal quarter, research and development (R&D) expenses were $37.7 million, 76.1% higher than the prior year fiscal quarter figure. The year-over-year increase was due to higher personnel-related expenses and higher development costs related to the batoclimab program and IMVT-1402.

General and administrative (G&A) expenses were $11.9 million in the reporting quarter, down 27% year over year. The decrease was due to lower financial advisory, legal and other professional costs.

As of September 30, 2022, Immunovant had a cash balance of $405.7 million compared to $427.2 million as of June 30, 2022.

With its existing cash balance, IMVT expects to fund its operating expenses and capital expenditure requirements in the second half of 2025.

Pipeline Update

Immunovant is developing batoclimab, its lead development candidate, as a subcutaneous injection to treat myasthenia gravis (MG) and thyroid eye disease (TED).

In September 2022, IMVT announced that it plans to develop batoclimab for two new indications, namely chronic inflammatory demyelinating polyneuropathy and Graves’ disease.

IMVT seeks to start a pivotal phase IIb study evaluating batoclimab for the treatment of chronic inflammatory demyelination by the end of 2022. Management also plans to start another phase II study of batoclimab to treat Graves’ disease in early 2023.

In June 2022, Immunovant initiated a pivotal study evaluating batoclimab for the treatment of MG. Top-line data from it is expected in the second half of 2024.

Immunovant achieved alignment with the FDA’s Division of Ophthalmology to initiate two phase III studies evaluating batoclimab to treat TED. Both studies are progressing well. Top-line data from both is expected in the first half of 2025.

IMVT also plans to start a placebo-controlled study of batoclib for the treatment of WAIHA. The study is contingent on discussions with the FDA’s division of hematology, which are expected to take place later in 2022.

Zacks Rank and Actions to Consider

Immunovant currently has a Zacks rank #3 (hold). Top-ranked stocks in the biotech sector include Akero Therapeutics, Inc. (Akro free report), Amarin Corporation plc (AMRN free report) and Atea Pharmaceuticals, Inc. (AVIR Free Report), all with a Zacks #2 (buy) rank today. You can see Full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Akero Therapeutics loss per share estimates have been reduced by 6.3% for 2022 and 0.3% for 2023 in the last 60 days.

Akero Therapeutics’ earnings beat estimates in two of the past four quarters and missed the mark in the remaining two quarters. AKRO witnessed a negative earnings surprise of 4.62%, on average.

Loss per share estimates for Amarin have been lowered 21% for 2022 and 50% for 2023 in the last 60 days.

Amarin’s earnings beat estimates in two of the past four quarters and fell short in the other two times. AMRN witnessed a negative earnings surprise of 14.29%, on average.

Loss per share estimates for Atea Pharmaceuticals have been reduced by 4.6% for 2022 and 1.9% for 2023 in the last 60 days.

Atea Pharmaceuticals’ profit beat estimates in three of the last four quarters and missed the mark in the remaining quarter. AVIR witnessed a negative earnings surprise of 58.74%, on average.

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