Salem Radio Network News Tuesday, November 28, 2023


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

(Reuters) -Shares of Immunovant 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, argenx and UCB 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, 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)


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