Immunovant shares were on track for their worst session in over a year after the biotech said it was halting development of its experimental autoimmune drug in one indication following a trial miss.

Immunovant on Wednesday reported negative results in a proof-of-concept trial for its lead pipeline candidate, imeroprubart. The study design is intended to test whether a new medicine works in humans the way researchers intend.

Immunovant, which focuses on autoimmune conditions, was evaluating the drug in patients with cutaneous lupus erythematous (CLE), a chronic disease where the body's immune system attacks healthy skin cells, causing inflammation, rashes, and sores.

The trial failed to meet its primary goal of reducing skin inflammation compared with a placebo on a clinical scoring tool. Consequently, Immunovant is discontinuing its CLE drug program.

Shares fell 7% to $34.70, pacing toward their largest single-day percent decrease since a 9.1% drop in May 2025, according to Dow Jones Market Data.

Management attributed the decision in part to a "competitive landscape." However, Immunovant noted that IMVT-1402 trended better than a placebo across multiple trial endpoints, with deeper reductions in Immunoglobulin G-an antibody responsible for fighting off infections-correlating with stronger clinical responses.

The company emphasized that all other development timelines remain on track. Immunovant continues to advance development across a range of other autoimmune diseases affecting the nervous system, hormones, and joints.