Shares of Immunovant, Inc. (IMVT) tumbled 5.78% in pre-market trading on Monday following the release of its second-quarter financial results and clinical trial updates. The biopharmaceutical company, focused on developing innovative treatments for autoimmune diseases, reported a wider-than-expected loss and provided mixed updates on its drug pipeline.
For the fiscal second quarter ended September 30, 2025, Immunovant reported a net loss of $126.5 million, or $0.73 per share, compared to a loss of $109.1 million, or $0.74 per share, in the same period last year. The result missed analysts' expectations, with the consensus estimate calling for a loss of $0.72 per share. The company's operating expenses increased to $131.76 million, primarily due to higher research and development costs associated with its clinical trials.
Despite the earnings miss, Immunovant highlighted positive developments in its clinical programs. The company reported promising results from its study of uncontrolled Graves' disease patients, showing the first-ever potentially disease-modifying outcome with six-month off-treatment data. However, investors seemed to focus on the delay in reporting results for the company's thyroid eye disease (TED) studies. While Immunovant remains on track for the first of two batoclimab Phase 3 TED studies to read out before the end of 2025, the company now anticipates sharing topline results from both TED studies concurrently in the first half of 2026, citing "evolving competitive dynamics." This delay appears to have contributed to the negative market reaction.
On a positive note, Immunovant reported a strong cash position of $521.9 million as of September 30, 2025, which the company believes will provide runway through the expected Graves' disease readout in 2027. The company continues to advance its IMVT-1402 development program across multiple indications, including potentially registrational studies in Graves' disease, myasthenia gravis, and other autoimmune conditions.
As investors digest the mixed news, the pre-market plunge reflects concerns about the company's near-term financial performance and the competitive landscape in its key therapeutic areas. However, the long-term potential of Immunovant's pipeline and its strong cash position may provide support for the stock as the market opens for regular trading.