Immunovant Q2 Loss Meets Analysts’ Expectations

Clinical-stage biopharmaceutical company Immunovant (IMVT) has reported a net loss of $0.31 for the second quarter of 2021, which is in line with the analysts’ expectations. Also, its bottom line compares favorably with a loss of $0.38 per share posted in the same quarter last year.

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The company has incurred research and development expenses worth $18.7 million, compared to $16.9 million in the year-ago quarter. The upside can be attributed to higher personnel-related expenses and increases related to clinical activities for analyzing data and the program-wide data review, partially offset by lower contract manufacturing costs.

Further, Immunovant ended the quarter with about $379 million in cash. (See Immunovant stock charts on TipRanks)

Notably, the company plans to initiate a pivotal study in Myasthenia Gravis (MG) in early 2022 and resume development in Warm Autoimmune Hemolytic Anemia and Thyroid Eye Disease. Immunovant expects at least one of these indications (beyond MG) to be a pivotal study.

On August 3, Robert W. Baird analyst Brian Skorney downgraded Immunovant to a Hold and lowered the price target to $10 from $20. The new price target implies 29% upside potential from current levels.

Skorney is of the opinion that the development path for IMVT-1401 seems difficult amid safety concerns and competition.

Based on 5 Buys, 4 Holds and 1 Sell, the stock has a Moderate Buy consensus. The average Immunovant price target of $20.43 implies 163.6% upside potential.