H.C. Wainwright reiterates buy rating on Roivant Sciences stock

H.C. Wainwright maintained its buy rating and $18.00 price target on Roivant Sciences (NASDAQ:ROIV), representing a significant upside from the current price of $11.11. According to InvestingPro data, analysts are broadly optimistic, with price targets ranging from $12 to $22. The call focused on the unmet needs in dermatomyositis, competitive advantages of brepocitinib, and the design of its pivotal trial.

The investment firm identified the upcoming Phase 3 VALOR study results for brepocitinib in dermatomyositis, expected in the second half of 2025, as the next key catalyst for Roivant. H.C. Wainwright noted these results could significantly expand the market opportunity for the drug. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt and a healthy current ratio of 33.47x, providing ample runway for drug development.

H.C. Wainwright expressed surprise that investors have overlooked brepocitinib despite its positive clinical data track record. The firm believes the non-infectious uveitis opportunity alone could position the drug to achieve blockbuster status. While the company’s current revenue stands at $29.05 million, InvestingPro subscribers can access detailed financial forecasts and 10+ additional ProTips that provide crucial insights into Roivant’s growth trajectory.

The research firm highlighted brepocitinib’s mechanism of action as distinctive from other JAK inhibitors, suppressing a broader set of signaling pathways. This difference could potentially offer greater efficacy and expand the drug’s indication set, according to H.C. Wainwright.

A successful VALOR study readout could support a New Drug Application submission in early 2026, potentially leading to a rapid launch since rheumatologists and dermatologists are already familiar with JAK inhibitors, the firm noted.

In other recent news, Roivant Sciences has been in the spotlight with several key developments. The company recently held a webinar on brepocitinib, a treatment under investigation for dermatomyositis, a condition affecting 40,000-50,000 patients in the U.S. Guggenheim has maintained a Buy rating and a $15.00 price target, highlighting the potential for brepocitinib to generate significant sales if approved. Additionally, Pulmovant, a Roivant subsidiary, announced positive Phase 1 data for mosliciguat, an inhaled treatment for pulmonary hypertension, showing it was well-tolerated without major side effects. H.C. Wainwright also reaffirmed its Buy rating and $18.00 price target for Roivant Sciences, citing the company’s strategic focus on new therapeutic areas and its ongoing patent litigation with Moderna (NASDAQ:MRNA).

In a related move, Roivant Sciences has made changes to its management team at Immunovant (NASDAQ:IMVT), appointing Eric Venker as CEO and Tiago Girao as CFO. This management transition coincides with a strategic shift to focus on six key indications for its treatment IMVT-1402, including Sjogren’s disease and cutaneous lupus erythematosus. Cantor Fitzgerald maintained an Overweight rating, noting the potential of the new indications and the strategic narrowing of the development focus. These developments reflect Roivant Sciences’ continued efforts to advance its pipeline and explore new opportunities in the biopharmaceutical sector.

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