IMVT Rockets 35% Despite Wider Loss As Arthritis Drug Shines In Study

• Phase 2 data evaluating IMVT-1402 showed strong response rates at Week 16.
• The trial will move into a blinded second phase to evaluate whether patients can maintain their response through Week 28.
• Immunovant reported a loss of $0.73 per share, compared to Wall Street’s estimates of a loss of $0.63 per share.

Shares of Immunovant Inc. (IMVT) shot up more than 36% on Wednesday to their highest levels in more than two years after the immunology firm posted encouraging Phase 2 data for its rheumatoid arthritis therapy, even as fourth-quarter net loss came in wider than expected.

IMVT shares are on track for their best single-day gains since September 2023.

IMVT-1402 Shows Promise

At Week 16, IMVT-1402 showed strong results in rheumatoid arthritis patients, with 72.7% improving, 54.5% improving substantially, and 35.8% improving a lot. 

The study enrolled 170 patients who had failed at least two prior advanced therapies, with many having lived with the disease for over a decade. IMVT-1402 was generally safe and well-tolerated, with no new safety concerns seen during the study. The trial will now move into a blinded second phase to evaluate whether patients can maintain their response through Week 28, the firm added.

The company expects additional updates on the rheumatoid arthritis program and topline data from its chronic lupus erythematosus (CLE) trial in the second half of 2026.

IMVT’s Q4 Loss Widens

Immunovant reported a net loss of $147.9 million, or $0.73 per share, compared to Wall Street’s estimates of a loss of $0.63 per share, according to Fiscal.ai data.

Research and development expenses increased to $142.3 million from $93.7 million a year earlier, driven by IMVT-1402 clinical trial activities and a $39 million contractual expense related to the discontinuation of Batoclimab for thyroid eye disease.

Last month, Immunovant said topline results from two of its Phase 3 studies of Batoclimab did not meet the primary endpoint.

What Do Retail Traders Think About Immunovant? 

Meanwhile, retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes.

The stock has gained around 35% so far this year.

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