TLDR
- Immunovant stock surged around 22% premarket after its drug IMVT-1402 showed strong results in a difficult-to-treat rheumatoid arthritis trial.
- Nearly 73% of patients achieved at least 20% improvement in joints after 16 weeks on a 600mg dose.
- The trial enrolled 170 patients who had failed at least two prior advanced therapies, including JAK inhibitors and anti-TNF drugs.
- The company posted a Q4 net loss of $147.9 million, or $0.73 per share, missing the analyst estimate of $0.59–$0.60.
- Immunovant says its cash position is sufficient to fund the planned launch of IMVT-1402 in Graves’ disease.
Immunovant (IMVT) stock jumped roughly 22% in premarket trading on Wednesday after the biotech released promising clinical trial data for its lead drug candidate, IMVT-1402. The move came despite the company missing earnings estimates for its fiscal fourth quarter.
The stock was trading up over 20% as of Wednesday morning. That kind of premarket move tells you exactly what investors cared about — and it wasn’t the bottom line.
The trial tested IMVT-1402 as a weekly subcutaneous injection in patients with difficult-to-treat rheumatoid arthritis. These weren’t easy cases. Every patient had already failed at least two advanced therapies.
Of 170 patients enrolled, 165 were fully evaluated at 16 weeks. On the 600mg dose, 72.7% achieved ACR20 — meaning at least a 20% improvement in tender and swollen joints. That’s a meaningful number in a population that hasn’t responded to prior treatment.
More than half, 54.5%, hit ACR50. And 35.8% reached ACR70, which reflects a 70% improvement in joint symptoms.
The results held up in an even tougher subgroup — patients who had failed both a JAK inhibitor and an anti-TNF therapy. Response rates in that group came in at 72.0%, 53.3%, and 37.4% for ACR20, ACR50, and ACR70, respectively.
No new safety signals were identified. The drug was described as safe and well-tolerated across the trial.
What the Earnings Actually Showed
Q4 net loss came in at $147.9 million, compared to $106.4 million in the same period last year. On a per-share basis, that was a loss of $0.73, versus analyst expectations of around $0.59 to $0.60.
Research and development expenses climbed to $142.3 million, up from $93.7 million a year ago. Part of that increase — $39 million — was tied to contractual costs from discontinuing its older drug, batoclimab.
Investors clearly looked past the miss. The trial data was the story.
What’s Next for IMVT-1402
Immunovant’s proof-of-concept trial in cutaneous lupus erythematosus is now fully enrolled. Topline data is expected in the second half of 2026.
The company also confirmed that all other clinical development timelines remain on track. That includes potentially registrational studies in Graves’ disease, myasthenia gravis, chronic inflammatory demyelinating polyneuropathy, and Sjögren’s disease.
The Graves’ disease program is a key near-term catalyst. Immunovant said its current cash position gives it enough runway to get IMVT-1402 to launch in that indication.
Further updates on the rheumatoid arthritis program are expected in the second half of the calendar year.
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