On Wednesday, Roivant Sciences Ltd. (NASDAQ:ROIV) posted fourth-quarter adjusted earnings per share of $0.28, far surpassing analyst expectations of a $0.29 loss per share. However, quarterly revenue came in at $2.52 million, missing the consensus forecast of $3.76 million.
The biotech company’s stock jumped 9.89% in pre-market trading after investors reacted positively to the stronger-than-expected earnings results and upbeat clinical developments.
Litigation Settlement Boosts Profitability
Roivant’s earnings were largely supported by a $770.2 million gain tied to a litigation settlement with Moderna, although the benefit was partially offset by higher research and development spending. Quarterly revenue declined 67% year over year from $7.57 million in the comparable period last year.
The company reported income from continuing operations of $355.7 million, a sharp turnaround from the $252.4 million loss recorded a year earlier.
Encouraging Rheumatoid Arthritis Trial Results
“The positive Period 1 data from the IMVT-1402 trial in D2T RA demonstrate exciting potential for a new, differentiated mechanism to treat RA patients who have failed multiple prior therapies,” said Matt Gline, CEO of Roivant.
Roivant highlighted encouraging data from its IMVT-1402 study in difficult-to-treat rheumatoid arthritis. The trial delivered Week 16 response rates of 72.7% for ACR20, 54.5% for ACR50, and 35.8% for ACR70.
The company also announced that the FDA granted Breakthrough Therapy Designation to brepocitinib for cutaneous sarcoidosis following positive Phase 2 trial results.
Cash Position and Pipeline Outlook
As of March 31, 2026, Roivant held consolidated cash, cash equivalents, and marketable securities totaling $4.3 billion, which management said is expected to support the business through profitability.
Looking ahead, the company plans to launch brepocitinib for dermatomyositis by the end of September 2026. Roivant also expects several clinical data readouts during the second half of calendar year 2026.