Why Immunovant Stock Blasted Higher Today

Key Points

• Immunovant released the results of a proof-of-concept study for its leading pipeline drug.

• Batoclimab did very well in the trial.

• 10 stocks we like better than Immunovant ›

Wednesday might have been a Hump Day of a slog to some investors, but not for those holding shares of Immunovant (NASDAQ: IMVT). On some rather encouraging news from the laboratory, the clinical-stage biotech's shares gained almost 11% in value, easily topping the 0.5% rise of the benchmark S&P 500 (SNPINDEX: ^GSPC).

Proven results

That afternoon, Immunovant shared data from a proof-of-concept study of its batoclimab. This is an investigational drug targeting Grave's disease (GD), an autoimmune disorder that results in the body producing too much thyroid hormone (also known as hyperthyroidism).

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The study, which lasted nearly one year, saw 17 of the 21 patients dosed with the drug maintain normal thyroid function six months after the completion of treatment. Eight of the 17 also did not require anti-thyroid drugs to keep the hormone in check.

The participants in the study suffered from Grave's disease, and continued to experience hyperthyroidism despite taking standard anti-thyroid medication.

In the press release trumpeting these results, Immunovant quoted its CEO Eric Venker as saying, "We believe these data have the potential to be transformative for patients and practice-changing for physicians, if approved by the Food and Drug Administration, by addressing a significant unmet need in Grave's disease."

A flexible drug?

As Grave's disease is a chronic condition, it is an appropriate target for an advanced treatment like batoclimab. Immunovant is also investigating the treatment for other indications, such as Sjögren's syndrome, a disorder of the salivary and tear glands. The company is in the early stages of development for these.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.