There was a bumper boost for stock in two Nasdaq-listed biotechs premarket after an experimental antibody treatment was revealed to have blockbuster potential.
Shares of Immunovant surged 59% after the company revealed encouraging data from an early-stage study of its key asset, IMVT-1402, being developed to treat a host of autoimmune diseases.
The study showed that the drug effectively reduced levels of inflammation-causing antibodies in healthy adults without affecting levels of a plasma protein known as serum albumin.
The positive results also had a ripple effect on Roivant Sciences, Immunovant's largest shareholder with 56.5% of the company, which saw its shares rise by 15% before the market opened.
The drug is part of an emerging class of treatments that block a receptor known as FcRn that, when activated, can trigger autoimmune diseases that attack healthy cells, causing inflammation and tissue damage.
Other companies working on FcRn inhibitors include Johnson & Johnson and Argenx.
At 9.17 am, Immunovant shares were up $11.92 at $32.20, while Roivant's rose $1.53 to $11.74.