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Guggenheim has reiterated a Buy rating and $15.00 price target on Roivant Sciences (NASDAQ:ROIV), currently trading at $11.11, following the company’s webinar on brepocitinib development in dermatomyositis (DM). According to InvestingPro data, analyst targets range from $12 to $22, suggesting significant upside potential, though the stock appears slightly overvalued at current levels.
The webinar, held Monday, focused on the company’s JAK1/TYK2 dual inhibitor and its ongoing Phase III VALOR study, which includes 241 patients and is expected to report results in the second half of 2025.
Dermatomyositis affects approximately 40,000-50,000 U.S. patients and is described as a debilitating disease that remains poorly controlled with standard-of-care treatments, despite the use of heavy steroids, immunosuppressants, and off-label JAK inhibitors.
Guggenheim noted that increasing use of JAK inhibitors, including three investigator-initiated trials and over 600 published cases, along with efficacy signals from trials of tofacitinib and ustekinumab, provide indirect support for brepocitinib’s mechanism of action in DM.
The research firm believes Roivant Sciences has taken appropriate steps to manage the high placebo response typically seen in this indication, and estimates the drug could generate more than $1 billion in sales for dermatomyositis if approved.
In other recent news, Roivant Sciences has been in the spotlight with several significant developments. The company reported positive Phase 1 data for mosliciguat, an inhaled treatment for pulmonary hypertension, showing it was well tolerated with no major side effects. This promising data supports ongoing Phase 2 trials for the drug. In another update, H.C. Wainwright reaffirmed its Buy rating and $18 price target for Roivant Sciences, citing the company’s strategic focus on expanding its therapeutic areas and a strong financial position. Additionally, Cantor Fitzgerald maintained an Overweight rating, highlighting Roivant’s decision to concentrate on fewer indications for its IMVT-1402 therapy, which could enhance development efficiency.
Roivant Sciences also announced a management change at its subsidiary, Immunovant (NASDAQ:IMVT), with Eric Venker taking over as CEO. This leadership shift aligns with the company’s strategy to focus on new therapeutic areas, including Sjogren’s syndrome and cutaneous lupus erythematosus. In corporate governance news, Roivant finalized a consulting agreement with its former Chief Accounting Officer, Rakhi Kumar, to provide advisory services during a transition period. This agreement allows the company to leverage her expertise while she continues to vest in her equity awards. These recent developments reflect Roivant Sciences’ ongoing efforts to advance its pipeline and streamline its operations.
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