Immunovant Pulls Plug On Lupus Program After Study Misses Primary Goal — IMVT Stock Heads For Over 3-Month Lows

Immunovant is discontinuing development of IMVT-1402 in cutaneous lupus but will continue to develop the therapy for several other autoimmune diseases.

• The company saw positive trends across several measures, including better responses among patients with higher reductions in IgG antibodies.
• Immunovant plans to stop drug development for CLE, given the “competitive landscape
• The biotech firm had $797.8 million in cash as of June 30 and expects its resources to fund operations through a potential IMVT-1402 launch in Graves’ disease.

Shares of Immunovant (IMVT) fell about 6% on Wednesday after its lead drug candidate failed to meet the primary goal of a proof-of-concept study in a form of lupus, prompting the company to stop developing the therapy for that indication.

If the current levels hold after the opening bell, IMVT shares would drop to their lowest levels in over three months.

Lupus Study Misses Main Goal

Immunovant said its 57-patient study of IMVT-1402, or Imeroprubart, in cutaneous lupus erythematosus (CLE) did not show a statistically significant improvement on its primary endpoint after 12 weeks. CLE is an autoimmune disease that primarily affects the skin, causing rashes, redness, and inflammation.

The company saw positive trends across several measures, including better responses among patients with higher reductions in IgG antibodies, immune system proteins that can contribute to autoimmune diseases.

However, the results did not meet Immunovant’s internal threshold to continue development in CLE, given the “competitive landscape.”

Broader Pipeline Remains On Track

The setback is limited to one indication for IMVT-1402, which remains the centerpiece of Immunovant’s pipeline. 

The company is continuing development of IMVT-1402 in other autoimmune indications targeting muscles, thyroid, and the eyes. These include Graves’ disease, myasthenia gravis, chronic inflammatory demyelinating polyneuropathy (CIDP), difficult-to-treat rheumatoid arthritis, and Sjögren's disease.

Immunovant expects topline data from potentially registrational studies in Graves’ disease and myasthenia gravis in 2027, followed by data from studies in CIDP and Sjögren’s disease in 2028.

Immunovant had $797.8 million in cash and cash equivalents as of June 30, down from $902.1 million at the end of March. The company said its current cash position is expected to fund operations through the potential commercial launch of IMVT-1402 in Graves’ disease.

Retail’s Take On IMVT

Retail sentiment for IMVT on Stocktwits turned ‘bearish’ from ‘neutral’ over the past 24 hours.

The stock has gained more than 37% so far this year.

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