Immunovant beats earnings estimates as cash position nears $1bn
Biotech advances IMVT-1402 trials while cutting costs by 22%
Immunovant shares extended gains Friday after the clinical-stage biotechnology company reported third-quarter earnings that exceeded analyst expectations, bolstered by a nearly $1bn cash position and progress across its drug development pipeline.
The New York-based company posted a net loss of $0.61 per share for the three months ended December 31, 2025, surpassing Wall Street estimates that ranged from a loss of $0.71 to $0.72. The result marked an improvement from the $0.76 loss per share recorded in the same period a year earlier, demonstrating the company's progress in controlling its burn rate as it advances clinical programs.
Perhaps most significant for investors was Immunovant's cash position, which reached $994.5 million as of December 31, 2025—a substantial increase from $521.9 million just three months earlier. The boost came from a December underwritten financing that raised approximately $550 million in gross proceeds from institutional investors and Roivant Sciences, Immunovant's parent company. According to management, this provides sufficient runway through the potential commercial launch of its lead candidate IMVT-1402 in Graves' disease.
"This strong cash position supports our continued execution across the IMVT-1402 program," the company stated in its earnings release, highlighting the strategic importance of the financing round.
On the operational front, Immunovant demonstrated meaningful cost discipline. General and administrative expenses fell to $15.4 million for the quarter, down 22% from $19.8 million in the same period of 2024. The reduction was driven by lower personnel-related costs, market research expenses, and information technology spending.
The company's clinical development milestones provided additional catalysts for investors. The potentially registrational trial of IMVT-1402 in difficult-to-treat rheumatoid arthritis (D2T RA) has completed enrollment, with topline data anticipated in the second half of calendar year 2026. Topline results from a proof-of-concept trial in cutaneous lupus erythematosus (CLE) are also expected in the second half of 2026.
Looking further ahead, Immunovant indicated that topline data from potentially registrational trials of IMVT-1402 in Graves' disease and myasthenia gravis are expected in calendar year 2027. The drug candidate is also being studied in chronic inflammatory demyelinating polyneuropathy (CIDP) and Sjögren's disease.
Meanwhile, the company's batoclimab program remains on track, with topline data from two Phase 3 studies evaluating the treatment for thyroid eye disease (TED) expected in the first half of 2026. Immunovant has previously announced it does not intend to seek regulatory approval for batoclimab in myasthenia gravis or CIDP, choosing instead to focus resources on IMVT-1402 for those indications.
Analyst sentiment surrounding Immunovant has turned increasingly bullish in recent months. Wolfe Research upgraded the stock to "Outperform" in early January 2026 with a $50 price target, citing an improved outlook for the company's Graves' disease program. Overall, 13 of 17 analysts covering the stock maintain a "Buy" rating, with a mean price target of $40.31—representing potential upside of approximately 67% from current levels near $24.
Immunovant's focus on monoclonal antibody therapies for autoimmune disorders places it in a competitive but potentially lucrative market. The company's strategy has shifted toward prioritizing IMVT-1402, a novel antibody designed to inhibit the neonatal Fc receptor (FcRn), which plays a key role in circulating antibody levels. By targeting FcRn, the therapy aims to reduce pathogenic immunoglobulin G (IgG) antibodies, which drive many autoimmune conditions.
The company's improved financial discipline and extended cash runway come at a critical juncture, as investors increasingly scrutinize biotechnology companies' ability to reach commercialization without excessive dilution. With nearly $1bn in cash and multiple data readouts scheduled over the next 18 months, Immunovant appears positioned to advance its pipeline while maintaining financial flexibility.