ROIV - Roivant stock price outlook: strong pipeline is a catalyst
2023-09-26 22:12:00 ET
Roivant Sciences ( NASDAQ: ROIV ) stock price surged on Tuesday as investors cheered the latest developments with Immunovant (NASDAQ: IMVT). The shares jumped by more than 20% and retested the year-to-date high of $12.90. They have soared by more than 390% from the lowest point in 2022.
Encouraging Immunovant data
Roivant Sciences is a biotech company, well-known for its association with Vivek Ramaswamy, the GOP presidential candidate. The company does research on various illnesses that are often ignored by big biotech companies.
Over the years, the company has achieved numerous successes. For example, according to its pipeline update, Roivant Sciences gained approval for its VTAMA product that deals with Psoriasis ailment.
Roivant Sciences is now at the various stages of seeking approvals for 12 more drugs in key areas like systemic lupus erythematosus, Chron’s Disease, Graves’ Disease, and Thyroid Eye Disease.
Most importantly, Roivant is in talks to sell an experimental drug for debilitating stomach disease to Roche. If the deal goes through, it will be valued at over $7 billion, which is almost similar to Roivant’s market cap of over $7.8 billion.
In my last article on Roivant Sciences, I noted that the company has a good track record in the industry. As such, there is a likelihood that its other drug candidates will gain FDA approval. For example, the FDA has approved at least five drugs by the company.
Roivant Sciences stock price jumped sharply after Immunovant announced encouraging Phase 1 trial for its IMVT-1402 drug. The trial showed strong reduction of Immunoglobulin G from subcutaneously administered doses. These results were in line with previously non-human studies.
Immunovant’s success was important since the company is part of Roivant Sciences family of companies. Other firms in the family are Lokavant, Priovant, dermavant, and Genvant. Roivant is still a major shareholder in Immunovant, which is now valued at over $2.6 billion.
Roivant Sciences stock price forecast
The daily chart shows that the Roivant Sciences share price has been in a strong bullish trend in the past few months. Along the way, the stock has formed an ascending channel shown in green. It is now a few points below the upper side of this channel. The shares have moved slightly above the 50-day and 100-day moving averages.
Roivant shares remain above the crucial support level at $10, the highest point on January 12th. Therefore, I believe that Roivant stock has more upside as buyers target the key resistance point at $15.
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