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Investing.com - Goldman Sachs has raised its price target on Roivant Sciences (NASDAQ:ROIV) to $24.00 from $20.00 while maintaining a Buy rating following positive Phase 3 trial results. The stock, currently trading at $15.28, has shown impressive momentum with a 30.69% gain over the past six months. According to InvestingPro data, analyst targets range from $12 to $22, with a strong consensus recommendation of 1.42 (Buy).
The price target increase comes after Roivant announced successful VALOR Phase 3 data for brepocitinib in dermatomyositis (DM), showing the once-daily oral treatment achieved statistically significant separation from placebo as early as week 4 and at every subsequent visit. With a market capitalization of $10.45 billion, Roivant maintains strong financial health, holding more cash than debt on its balance sheet. InvestingPro subscribers have access to 17 additional key insights about ROIV’s financial position and market performance.
The trial demonstrated that brepocitinib delivered a decisive primary endpoint win with a mean Total Improvement Score (TIS) of 46.5 versus 31.2 for placebo, alongside rapid onset of benefits and approximately twice the reduction or discontinuation of steroid use compared to placebo patients on baseline steroids.
Goldman Sachs has increased its peak market share estimate for brepocitinib in dermatomyositis to 30% from 20% previously, and raised probability of success estimates for DM/NIU to 95%/85% from 75%, with projected peak sales of $3 billion and $1 billion respectively.
The firm now focuses on Roivant’s upcoming catalysts, including continued brepocitinib development in non-infectious uveitis (Phase 3 underway) and cutaneous sarcoidosis (Phase 2 anticipated in second half of 2026), additional portfolio readouts, potential upside from LNP litigation, and possible business development to expand the pipeline.
In other recent news, Roivant Sciences announced positive results from a Phase 3 trial of brepocitinib, a treatment for dermatomyositis. The once-daily oral medication demonstrated statistically significant improvement in patients, achieving a mean Total Improvement Score of 46.5 compared to 31.2 for placebo after 52 weeks. This development marks the drug’s success in meeting its primary endpoint and all nine key secondary endpoints. Additionally, TD Cowen has reiterated its Buy rating on Roivant Sciences, following a favorable court ruling in a patent dispute involving Arbutus Biopharma and Pfizer/BioNTech. The court sided with Arbutus on three of four claims related to lipid nanoparticle composition and production methods. Furthermore, Japan’s Ministry of Health, Labour and Welfare has granted orphan drug designation to Pulmovant’s mosliciguat for pulmonary hypertension associated with interstitial lung disease. This status provides regulatory benefits such as priority consultation and market exclusivity if approved. These recent developments indicate ongoing advancements and regulatory progress for both Roivant Sciences and Pulmovant.
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