On Wednesday, Goldman Sachs initiated coverage on shares of Immunovant (NASDAQ:IMVT) with a Buy rating and a 12-month price target of $50, indicating a 60% upside potential. The coverage comes with high expectations for the company's leading drug candidate, IMVT-1402, which is viewed as a possible standout therapy in its class.
The optimism surrounding IMVT-1402 is based on several factors. The anti-FcRn antibody has demonstrated an ability to significantly reduce IgG levels, and its subcutaneous formulation, coupled with a favorable safety profile, contributes to its potential as a best-in-class therapy.
Although the market for anti-FcRn directed agents is competitive, with treatments such as Vyvgart and Rystiggo further along in development for myasthenia gravis (MG) and chronic inflammatory demyelinating polyneuropathy (CIDP), Goldman Sachs sees an opportunity for Immunovant to differentiate itself both in terms of the drug's profile and its strategic development approach.
Goldman Sachs has projected peak sales for IMVT-1402 to reach $4.4 billion, assuming the drug's efficacy aligns with that of the most advanced competitors. However, the firm also suggests there could be an upside potential of up to $6.2 billion in peak sales if IMVT-1402 proves to be best-in-class in terms of efficacy.
Key milestones are anticipated in the near future, as results from ongoing studies of Immunovant's first-generation candidate, batoclimab, are expected later in the year. These results, particularly from trials in CIDP around mid-2024 and MG in the second half of 2024, will be crucial in determining batoclimab's efficacy compared to more developed programs and could provide significant near-term value inflection for the company.
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