Roivant Sciences has reported a third-quarter earnings miss but revenue that topped analysts’ expectations, sending its shares higher in Monday premarket trading.
The company also said it has sufficient cash to fund its programs after it and Pfizer agreed to sell Telavant, manufacturer of an inflammatory bowel disease drug, to Roche for $7.25 billion.
“While we intend to be very thoughtful about capital deployment, we expect that the resulting cash will be sufficient to fund our programs through profitability, in addition to enabling other opportunities and investments,” commented Roivant CEO Matt Gline in a statement.
“This was also another significant quarter for our clinical programs with a data readout from IMVT-1402’s Phase 1 SAD study and 300 mg MAD cohort. The data represent what we believe is the best-case scenario for our FcRn franchise and truly broadens the horizon for what is possible in the landscape of autoimmune therapies and for patients suffering from autoimmune diseases.”
Revenue for the quarter rose 196% to $37.1 million, ahead of the consensus estimate of $29.1 million.
But it reported a loss of $0.40 for the quarter, down from a $0.42 loss a year earlier but wider than the $0.29 loss expected by the Street.
“We are excited about the recent progress and look forward to announcing additional clinical results for 1402 and brepocitinib in the final quarter of the calendar year. 2023 has continued to deliver on being an incredibly catalyst-rich year, and certainly Roivant’s biggest year yet,” Gline added.
The company’s shares traded 2.5% higher at $9.03 ahead of the opening bell.
Contact the author at stephen.gunnion@proactiveinvestors.com