On Wednesday, Piper Sandler, a financial services firm, adjusted its outlook on Roivant Sciences (NASDAQ:ROIV) shares, increasing the price target from $20.00 to $22.00. The firm maintained an Overweight rating on the company's stock.
This adjustment follows the promising results from a Phase 2 trial involving Roivant's drug candidate brepocitinib, a JAK1/TYK2 inhibitor, for the treatment of non-infectious uveitis (NIU).
The analyst at Piper Sandler highlighted the strong efficacy signal from the trial, which involved 26 participants and was disclosed in April. Despite the positive data, the market has not fully recognized the potential value of brepocitinib for NIU, possibly due to investors' unfamiliarity with this medical condition. NIU has only one approved systemic treatment agent to date, which is Humira.
The report provided by Piper Sandler serves as an introduction to NIU, the current treatment landscape, and the commercial prospects of brepocitinib. The firm's valuation model now includes the potential revenue from brepocitinib's use in treating NIU.
Looking ahead, several catalysts are expected for brepocitinib in the second half of 2024. These include the full Phase 2 data release, an End of Phase 2 meeting with regulatory authorities, and the initiation of Phase 3 trials. Additionally, Phase 3 data for the treatment of dermatomyositis is anticipated in 2025.
Piper Sandler's revised price target reflects the anticipation that the value of brepocitinib will gradually be incorporated into Roivant Sciences' stock price. The firm suggests that investors consider buying shares at the new target price of $22.00.
In other recent news, Roivant Sciences has seen some important developments. The biopharmaceutical company's Q4 revenue was reported at $19.3 million, falling slightly short of the expected $22.9 million.
Despite this, Piper Sandler reaffirmed its Overweight rating on Roivant, maintaining a stock price target of $20.00. This confidence is largely attributed to the company's strategic prioritization of their '1402 asset and the growing momentum for brepocitinib.
JPMorgan (NYSE:JPM) also adjusted its outlook on Roivant Sciences, raising the price target to $16.00, reflecting a positive view of the sales performance of Vtama, a topical cream for plaque psoriasis. The firm expects Vtama's sales to expand further into the atopic dermatitis market, reinforcing its position as a leading product in its class.
Additionally, Roivant's CEO, Matt Gline, has outlined strategic growth plans, emphasizing the expansion of Immunovant (NASDAQ:IMVT)'s portfolio and the launch of VTAMA. The company ended the fiscal year with a robust $6.6 billion in cash and plans to utilize its capital for share repurchases, pipeline investments, and in-licensing new programs. These recent developments reflect Roivant's commitment to driving innovation and capitalizing on market opportunities.
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