Immunovant announced positive results from its drug, IMVT-1402, which showed promise in lowering levels of immunoglobulin G (IgG) in healthy individuals. IgG is an antibody associated with various autoimmune conditions. The experimental drug demonstrated dose-dependent reductions in IgG without increasing “bad” LDL cholesterol or serum albumin levels, which can indicate dehydration or diarrhea. These results exceeded expectations and could position IMVT-1402 as a leading treatment for autoimmune diseases. As a result, Immunovant’s stock, IVMT, surged to a two-year high.
Immunovant conducted tests on healthy adults using various doses of IMVT-1402. The drug consistently lowered IgG levels, with a 63% reduction observed after four weekly doses of 300 milligrams. This reduction was comparable to a 340-milligram dose of Immunovant’s previous drug, batoclimab, but without the negative impact on LDL cholesterol and albumin. The reduction in IgG levels aligns IMVT-1402 with Argenx’s Vyvgart, a treatment for autoimmune conditions such as generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy (CIDP). However, analysts believe that Argenx’s significant lead in development may make it challenging for IMVT-1402 to gain market share.
Despite this challenge, Immunovant’s positive results led to a significant boost in its stock price, reaching its highest point since February 2021. Investors reacted positively to the drug’s potential to treat autoimmune diseases and the absence of negative side effects. The company’s stock performance has been consistently strong, with an impressive Relative Strength Rating of 98 out of 99, indicating it is among the top 2% of all stocks in terms of 12-month performance. Analysts also mentioned the potential of IMVT-1402 in treating rheumatoid arthritis and highlighted the self-administered injection market. However, they maintained an outperform rating on Argenx stock, citing its current lead and development in rare diseases.