IMVT Posts Narrower-Than-Expected Q3 Loss, Pipeline in Focus

Immunovant, Inc. (IMVT) reported third-quarter fiscal 2026 net loss of 61 cents per share, narrower than the Zacks Consensus Estimate of a loss of 72 cents. The company had reported a loss of 76 cents per share in the year-ago quarter.

Excluding stock-based compensation expense, IMVT reported a net loss of 54 cents per share.

Currently, Immunovant does not have any approved products in its portfolio and therefore is yet to generate revenues.

IMVT’s Q3 Results in Detail

Research and development expenses totaled $98.9 million, up 4.6% from the year-ago quarter’s figure. The increase was mainly due to activities related to the clinical studies of IMVT-1402, including higher contract manufacturing costs and increased personnel-related expenses.

General and administrative expenses amounted to $15.4 million, down 22% year over year, mostly due to lower personnel-related expenses, market research costs and information technology costs.

As of Dec. 30, 2025, Immunovant’s cash and cash equivalents totaled approximately $994.5 million compared with $521.9 million as of Sept. 30, 2025

In December 2025, Immunovant raised approximately $550 million in gross proceeds through an underwritten financing led by key institutional investors and Roivant. The financing extends IMVT’s cash runway through the commercial launch of IMVT-1402 for Graves’ disease (GD).

Over the past year  Immunovant shares have surged 38.6% compared with the industry’s 20.3% growth.

Key Pipeline Updates of IMVT

Immunovant has designated IMVT-1402, a next-generation neonatal fragment crystallizable receptor (FcRn) inhibitor, as its lead asset, given its broad potential across multiple indications.

IMVT remains on track with the development of IMVT-1402 across multiple indications, including potentially registrational studies in GD, difficult-to-treat rheumatoid arthritis (D2T RA), myasthenia gravis (MG), chronic inflammatory demyelinating polyneuropathy and Sjögren’s disease, as well as a proof-of-concept trial in cutaneous lupus erythematosus (CLE).

Immunovant completed enrollment in the open-label portion of the potentially registrational trial of IMVT-1402 in D2T RA. Top-line data is expected in the second half of 2026.

Top-line data from potentially registrational clinical studies evaluating IMVT-1402 for the treatment of patients with GD as well as MG are anticipated in 2027.

Immunovant expects to report top-line data from the proof-of-concept study of IMVT-1402 in CLE in the second half of 2026.

It is also evaluating a second candidate, batoclimab, in ongoing mid-to-late-stage studies for two autoimmune indications, GD and thyroid eye disease (TED). Batoclimab is a fully human monoclonal antibody targeting FcRn.

Immunovant expects to report top-line data from its two late-stage clinical studies evaluating batoclimab for the treatment of patients with active, moderate-to-severe TED in the first half of 2026.

IMVT’s Zacks Rank and Other Stocks to Consider

Immunovant currently carries a Zacks Rank #2 (Buy).

Some better-ranked stocks in the biotech sector are Exelixis (EXEL), Alkermes (ALKS) and Castle Biosciences (CSTL), each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Exelixis’ 2026 earnings per share have risen from $3.18 to $3.39. EXEL shares have surged 31.1% over the past year.

Exelixis’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 21.39%.

Over the past 60 days, estimates for Alkermes’ 2026 earnings per share have increased from $1.54 to $1.91. ALKS shares have risen 11.8% over the past year.

Alkermes’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average earnings surprise being 4.58%.

Over the past 60 days, estimates for Castle Biosciences’ 2026 loss per share have narrowed from $1.06 to 96 cents. CSTL shares have risen 18.2% over the past year.

Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 66.11%.

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This article originally published on Zacks Investment Research (zacks.com).

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