IMVT, ROIV Stocks Slide As Argenx Sjögren’s Trial Failure Hits Drug Class

Immunovant is developing IMVT-1402 in an ongoing mid-stage study in Sjögren’s disease, which works the same way as Argenx’s efgartigimod.

• IMVT-1402 missed its main goal in a cutaneous lupus study in September, and that program was dropped.
• H.C. Wainwright termed Argenx’s trial halt in Sjögren’s a “surprising setback.”
• Wainwright said it is now more cautious about what the failure implies for Immunovant’s mid-stage study.

Shares of Immunovant (IMVT) sold off Thursday as traders treated Argenx’s (ARGX) failed late-stage Sjögren’s trial as a warning for its own experimental drug for the autoimmune disorder.

Immunovant (IMVT) fell about 6% to $30.06 in morning trading. Its parent Roivant (ROIV) was also weaker, trading down roughly 2%.

Why Did IMVT, ROIV Fall On Rival Trial?

Immunovant is developing IMVT-1402 in an ongoing mid-stage study in Sjögren’s disease. Argenx’s efgartigimod works the same way: it lowers circulating IgG antibodies that can drive autoimmune disease.

A late-stage failure for a closely related drug raises the odds that simply reducing IgG may not be enough in Sjögren’s. The move also follows Immunovant’s late-September setback, when IMVT-1402 missed its main goal in a cutaneous lupus study, and that program was dropped.

Roivant is the majority owner of Immunovant, and IMVT-1402 is central to the group’s autoimmune story.

ARGX’s Failed Trial

Argenx has stopped its late-stage UNITY study of weekly subcutaneous efgartigimod in adults with moderate-to-severe Sjögren’s disease. An independent monitoring committee, after an interim look, said the trial was unlikely to meet its main goal: a reduction in systemic disease activity at week 48, the company said. Safety matched the drug’s known profile, with no new signals.

Sjögren’s, which causes dry eyes, dry mouth, fatigue and joint pain, still has no approved targeted therapy and is unusually varied from patient to patient, which makes trials hard to win.

Argenx’s U.S. shares were down about 14% to $797.69. The drug is already approved as Vyvgart for the treatment of generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy (CIDP). The failed trial removes the Sjögren’s path for Vyvgart.

Analyst Weighs In On ARGX’s Failed Trial

H.C. Wainwright analyst Douglas Tsao called it a good-news, bad-news day for Argenx. On the positive side, the analyst said a 126-patient mid-stage study of FB102 in celiac disease met its primary endpoint. Argenx acquired FB102 through its $2.2 billion acquisition of Forte Biosciences. The firm sees that result as real validation of Argenx’s Forte deal and a clear step toward a late-stage study.

The UNITY stop, by contrast, was a “surprising setback,” the firm said. Wainwright said it is now more cautious about what the failure implies for Immunovant’s mid-stage Sjögren’s study of IMVT-1402. It kept a ‘Buy’ on Argenx and a $1,202 price target.

How Did IMVT, ROIV, ARGX Retail Traders React?

On Stocktwits, retail sentiment around IMVT and ROIV was in 'neutral' and 'bearish' territory, respectively.

Sentiment around ARGX, however, jumped from 'bearish' to 'bullish' territory.

IMVT stock has gained 19% this year, while ROIV has gained 55%. ARGX, however, has lost 4%. 

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