IMVT - Immunovant draws Buy from Stifel on potential beyond myasthenia gravis

2023-03-30 10:51:52 ET

Stifel has launched its coverage on clinical-stage biotech Immunovant ( NASDAQ: IMVT ) with a Buy rating and a $28 per share target, arguing that the company’s prospects extend beyond the autoimmune disorder myasthenia gravis.

Immunovant ( IMVT ) is advancing the monoclonal antibody batoclimab, an inhibitor of neonatal fragment crystallizable receptor (FcRn), in a Phase 3 trial against the neuromuscular disease.

Stifel analyst Alex Thompson argues that FcRn blockers “has the potential for broad utility beyond” MG with more than 20 Phase 2/3 readouts scheduled over the next two years across a wide range of autoimmune indications.

“Among the antibody players, we think IMVT is uniquely positioned as a pure FcRn play at a meaningful discount to first-mover ARGX,” Thompson wrote, referring to the Dutch biotech argenx ( ARGX ), which is also targeting MG with its lead asset efgartigimod.

The analyst highlights the differentiation potential of batoclimab and the company’s next-gen candidate IMVT-1402 vs. other antibodies in validated indications such as MG. However, Thompson argues that efgartigimod’s first move advantage and differentiated mechanism of action are unlikely to be challenged.

According to Seeking Alpha contributor Stephen Ayers, Immunovant ( IMVT ) is “a prime candidate for shorting.”

For further details see: