Why Immunovant Stock Is Bolting Higher Today
Shares of Immunovant (NASDAQ: IMVT), an autoimmune specialist and subsidiary of Roivant Sciences (NASDAQ: ROIV), are showing no signs of cooling off after nearly doubling in value on Tuesday. Specifically, the drugmaker's shares were up by another 5.3% on sky-high volume as of 11:27 a.m. ET Wednesday morning. Roivant Sciences stock is also up for a second straight day, with the drugmaker's shares rising by as much as 6.6% in early-morning trading.
What's all the fuss about? Tuesday, Immuovant announced phase 1 data for its neonatal fragment crystallizable receptor (FcRn) inhibitor IMVT-1402. Investors piled into the stock because the early-stage therapy achieved peak immunoglobulin G (IgG) reductions on par with its late-stage candidate batoclimab without a dose-related change in serum albumin or LDL-C. In other words, IMVT-1402 might be both a more effective and safer compound than batoclimab in some settings.
The big deal is that FcRn inhibition could evolve into a $40 billion-a-year therapy class for scores of IgG-mediated autoimmune indications. Several major pharmaceutical companies, like Argenx, Johnson & Johnson, and UCB, have been pouring resources into this area over the last few years with the hopes of developing the next major breakthrough in the treatment of autoimmune disorders.
Source Fool.com
