Immunovant, Inc. (NASDAQ:IMVT) reported a fourth-quarter loss of $0.73 per share on Wednesday, wider than the analyst consensus estimate of a $0.60 per share loss.
Despite the weaker-than-expected earnings result, the company’s shares climbed 8.41% in pre-market trading as investors reacted positively to encouraging clinical data from Immunovant’s lead drug candidate, IMVT-1402.
Rheumatoid Arthritis Trial Shows Strong Responses
The company released preliminary results from its IMVT-1402 study in difficult-to-treat rheumatoid arthritis, reporting Week 16 response rates of 72.7% for ACR20, 54.5% for ACR50, and 35.8% for ACR70.
The trial included 170 participants who had previously failed at least two advanced therapies. In a subgroup of patients who had failed both a JAK inhibitor and an anti-TNF inhibitor, response rates remained strong at 72.0%, 53.3%, and 37.4%, respectively.
Immunovant said IMVT-1402 was generally safe and well tolerated, with no new drug-related safety concerns identified during the study.
Additional Clinical Programs Remain on Track
The company also announced that enrollment has been completed for its proof-of-concept study in cutaneous lupus erythematosus, with topline data expected during the second half of calendar year 2026.
Management said development timelines for other IMVT-1402 programs continue as planned, including potentially registrational studies in Graves’ disease, myasthenia gravis, chronic inflammatory demyelinating polyneuropathy, and Sjögren’s disease.
Expenses Rise as Development Accelerates
Net loss for the fourth quarter widened to $147.9 million from $106.4 million in the same period last year.
Research and development expenses increased to $142.3 million, compared with $93.7 million a year earlier, primarily due to ongoing IMVT-1402 clinical trial activity and $39.0 million in contractual costs tied to the discontinuation of batoclimab. Adjusted R&D expenses rose to $136.0 million from $87.2 million in the prior-year period.
For the full fiscal year ended March 31, 2026, Immunovant reported a net loss of $505.6 million, or $2.77 per share, compared with a loss of $413.8 million, or $2.73 per share, in fiscal 2025.
Cash Position Supports Future Launch Plans
As of March 31, 2026, the company held $902.1 million in cash and cash equivalents. Immunovant said the balance is expected to fund operations through the potential commercial launch of IMVT-1402 in Graves’ disease.