Roivant Sciences Ltd. (ROIV) shares surged 9.89% in pre-market trading on Wednesday, following the release of its fourth-quarter financial results.

The biopharmaceutical company reported a significant swing to profitability, with net income attributable to shareholders reaching $302.99 million for the quarter, compared to a loss a year earlier. This unexpected profit was primarily driven by a $770.24 million gain from a litigation settlement with Moderna, which contributed to income from operations of $415.24 million, dramatically beating analyst estimates of a $310.4 million loss.

Beyond the one-time legal gain, Roivant provided a positive business update, reiterating its expectation to launch brepocitinib in dermatomyositis by the end of September 2026 and anticipating key clinical trial data readouts in the second half of the year. The company also reported a strong cash position of $4.3 billion, which it stated supports its runway into profitability.