Why Immunovant Stock Is Bouncing Back Today

Shares of clinical-stage biopharmaceutical company Immunovant (NASDAQ: IMVT) are rising sharply on Wednesday morning and are up by 13.5% as of 11:55 a.m. EST, after jumping by as much as 15.4% earlier today. The drugmaker did not report any news today, at least not yet. What's more, Immunovant is gaining ground despite a Wall Street analyst lowering his price target on the stock. What exactly is going on?

In early February, Immunovant reported that it had to halt two clinical trials for one of its pipeline candidates, IMVT-1401. The company made this decision after recording cases of elevated total cholesterol and LDL levels in patients treated with the experimental Thyroid Eye Disease treatment. High LDL levels, a form of cholesterol, can lead to severe health consequences such as heart attacks and strokes. Naturally, investors weren't thrilled with this news and responded by selling-off Immunovant's shares. In the past two weeks (or so), the company lost over half its value, with its market cap dropping to $1.8 billion as of this writing (down from more than $4 billion on Feb. 1).

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Source Fool.com