Analyst Jason Gerberry of Bank of America Securities reiterated a Buy rating on Immunovant (IMVT – Research Report), with a price target of $51.00.
Jason Gerberry has given his Buy rating due to a combination of factors related to Immunovant’s recent clinical results and the drug’s potential market. Immunovant’s Phase 2 study presented promising data for the treatment of Graves’ disease, showing more than a 50% response rate in a challenging patient population that remained hyperthyroid despite previous treatment. This success rate is notably higher than the expected 5-15% for a hypothetical placebo group. Gerberry’s confidence is further bolstered by the potential for batoclimab (IMVT’s ‘1401 treatment) to be a first-in-class option in this space, which justifies the increased probability of success (POS) from 40% to 50% and leads to a raised price objective from $49 to $51.
The financial assessment reflects the significance of the drug moving into Phase 3 trials and the management’s positive outlook on this progression. The analyst also noted the importance of transitioning to ‘1402 for maintenance dosing, which could sustain IgG reduction and benefit patients long-term. The trial’s results, which indicated that more than half of the patients achieved T3/T4 normalization and some could taper off their medication completely, suggest a potential shift in the treatment paradigm for Graves’ disease. This is particularly noteworthy as the current alternatives for patients are invasive and require lifelong management, indicating a considerable market opportunity for Immunovant.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $48.00 price target.
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Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IMVT in relation to earlier this year.
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Immunovant (IMVT) Company Description:
Immunovant, Inc. is a clinical-stage biopharmaceutical company. It focuses on enabling normal lives for patients with autoimmune diseases. The company was founded in 2018 and is headquartered in New York, NY.
Read More on IMVT:
- Immunovant Reports Positive Initial Phase 2 Results for Batoclimab in Graves’ Disease
- Immunovant initiated with bullish view at Deutsche Bank, here’s why
- TD Cowen starts ‘only pure-play TL1A company’ Spyre Therapeutics at Outperform
- Roivant notes Immunovant data from Phase 1 IMVT-1402 trial
- Immunovant announces results from 600 mg MAD cohort of Phase 1 IMVT-1402 trial
