Immunovant's Q1 Loss Wider Than Expected, Pipeline in Progress

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

IMVT’s Q1’27 Results in Detail

Research and development expenses totaled $142.6 million, up 40.9% from the year-ago quarter’s figure. The increase was primarily driven by higher spending on clinical studies of IMVT-1402, including contract manufacturing costs, partially offset by lower overall expenses as the company winds down its batoclimab clinical studies.

General and administrative expenses were $17.7 million, down 32% year over year, primarily due to lower personnel-related expenses, market research and information technology costs, legal and other professional fees.

As of June 30, 2026, Immunovant’s cash and cash equivalents totaled approximately $797.8 million compared with $902.1 million as of March 31, 2026. The cash balance is expected to extend IMVT’s cash runway through the commercial launch of IMVT-1402 for Graves’ disease (GD).

Year to date, Immunovant shares have risen 54.5% compared with the industry’s 3.4% growth.

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Key Pipeline Updates of IMVT

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

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

Previously, the company announced strong early data from the open-label portion of the ongoing phase II study evaluating IMVT-1402 in D2T RA patients who had failed multiple prior advanced therapies. Further updates from the study are 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 and 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.

Top-line data from the registrational studies of IMVT-1402 in CIDP and SjD are expected in 2028.

IMVT’s Zacks Rank & Stocks to Consider

Immunovant currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy) and Altimmune ALT, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, earnings per share estimates for Harmony Biosciences have increased from $3.20 to $3.33 for 2026. Over the same period, estimates for earnings per share increased from $3.64 to $3.87 for 2027. HRMY shares have risen 2.2% year to date.

Harmony Biosciences missed on earnings in three of the trailing four quarters and beat in the remaining one, delivering an average negative surprise of 13.97%.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have increased to $3.02 from $2.97. Over the same period, EPS estimates for 2027 have risen to $5.31 from $4.81. LQDA shares have gained 158.4% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.

Over the past 60 days, estimates for Altimmune’s 2026 loss per share have narrowed from 69 cents to 64 cents. Over the same period, loss estimates for 2027 have also improved from 73 cents to 64 cents. ALT shares have declined 16.1% year to date.

Altimmune’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, the average surprise being 15.81%.

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

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