Immunovant appoints Eric Venker as CEO with new compensation agreement

Immunovant, Inc. (NASDAQ:IMVT), a $2.86 billion market cap biotech company that according to InvestingPro analysis appears slightly undervalued at current levels, announced Monday that it has entered into an employment agreement with Eric Venker, M.D., Pharm.D., formalizing his role as Chief Executive Officer and principal executive officer. Dr. Venker was appointed to these positions effective April 21, 2025, and also serves as a director on the company’s board.

Under the terms of the agreement, Dr. Venker will receive an annual base salary of $672,000 and is eligible for a discretionary annual performance bonus targeted at 72.25% of his base salary, subject to performance assessments by the board’s Compensation Committee.

As part of his compensation, Dr. Venker was granted equity awards on Monday, including 1,300,000 common stock options, options with a grant date value of $2,250,000 (representing 189,900 shares), and 1,475,000 capped value appreciation rights (CVARs). The exercise price for the options is set at the fair market value of Immunovant’s common stock on the grant date. The options will vest over four years, with 25% vesting on April 21, 2026, and the remainder vesting in twelve equal quarterly installments, subject to continued employment. Shares underlying the unit option award will be subject to a two-year holding period following each vesting event, with certain exceptions for tax obligations or board consent.

The CVARs will vest and settle into shares upon meeting service, performance, and share price requirements. The service requirement vests 25% of the CVARs on April 1, 2026, with the remainder in twelve quarterly installments. The performance requirement is based on specified clinical development activities, and the knock-in requirement is met if Immunovant’s share price reaches at least $16.76. Vested CVARs entitle Dr. Venker to a payment based on the share price, capped at $16.76 per share, above a hurdle price of $14.46. Most shares issued from vested CVARs will be subject to a two-year holding period.

If Dr. Venker’s employment is terminated by Immunovant without cause or by Dr. Venker for good reason, he is eligible for severance benefits including twelve months of base salary, his target annual bonus, and health coverage continuation, subject to certain conditions.

This information is based on a statement from Immunovant’s SEC filing.

In other recent news, Immunovant has been the focus of several analyst updates and company announcements. Goldman Sachs has resumed coverage of Immunovant with a Neutral rating, setting a price target of $18.00. The firm noted the potential of Immunovant’s asset, IMVT-1402, in treating conditions like Graves disease and cutaneous lupus erythematosus. Meanwhile, H.C. Wainwright adjusted its price target for Immunovant to $35.00, down from $54.00, while maintaining a Buy rating. This revision followed Immunovant’s announcement of six potential indications for its drug candidate IMVT-1402, including treatments for Graves’ Disease and rheumatoid arthritis. The company plans to initiate potential registrational studies for Graves’ Disease and Sjögren’s Disease in the summer of 2025. Additionally, Immunovant reported a strong cash position of $714 million as of March, anticipated to support operations through the expected readout of the Graves’ Disease study in 2027. These developments highlight Immunovant’s ongoing strategic focus on advancing its drug candidate pipeline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.