By Mackenzie Tatananni

A clinical breakthrough trumped fiscal pain for Immunovant on Wednesday, as investors brushed aside weak quarterly results to focus on trial data for its experimental drug, IMVT-1402.

Researchers are testing a weekly subcutaneous injection of IMVT-1402 for patients with difficult-to-treat rheumatoid arthritis. These patients didn't get better after trying at least two advanced therapies.

Of the 170 patients who began the study, 165 were fully evaluated. After 16 weeks on a 600-milligram dose, the drug showed what Immunovant called "clinically meaningful response rates." Nearly 73% of patients achieved at least a 20% improvement in tender and swollen joints, more than half saw a 50% improvement, and 36% reached a 70% improvement.

Immunovant expects to provide further updates in the second half of the year. The company noted that its other clinical trials remain on track as it looks to expand the treatment into other indications. Crucially for investors, Immunovant believes its cash position provides sufficient runway to launch IMVT-1402 in Graves' disease.

Shares surged 22% in premarket trading as the trial results eclipsed a wider-than-expected quarterly loss. The drugmaker posted a loss of $147.9 million, or 73 cents a share, in the fiscal fourth quarter. Analysts had anticipated a per-share loss of 59 cents.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 20, 2026 09:15 ET (13:15 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.