Immunovant drops failed autoimmune drug, shifting cash focus to next-gen asset

Immunovant (NASDAQ:IMVT) announced its corporate updates and financial results for the fourth quarter and full fiscal year ended March 31, 2026, confirming the formal termination of its first-generation autoantibody program following dual late-stage clinical trial failures.

The Durham, North Carolina-based biotechnology firm officially discontinued the development of batoclimab across all targeted medical indications.

The decision followed two Phase 3 clinical trials evaluating the drug as a treatment for moderate-to-severe thyroid eye disease, both of which failed to achieve their primary clinical endpoints of significant eye bulge reduction.

The wind-down process and associated contractual termination liabilities cost the company $39 million.

The discontinuation expenditures and increased clinical trial activity contributed to a full-year net loss of $505.6 million, or $2.77 per share.

Total annual research and development expenses climbed to $456.7 million, up from $360.9 million recorded during the previous fiscal year.

For the fiscal fourth quarter, Immunovant posted a net loss of $147.9 million, or $0.73 per share, on research and development costs of $142.3 million.

Despite the clinical setback with its legacy asset, Immunovant maintained a heavily capitalized balance sheet, concluding the fiscal year with $902.1 million in liquid cash and cash equivalents.

Management indicated that this reserve provides a continuous funding runway through the anticipated commercial introduction of its newer, second-generation therapy, IMVT-1402, for Graves' disease.

Corporate development focus has entirely pivoted to the IMVT-1402 portfolio, which leverages data and investigator networks compiled during the earlier program.

The next-generation anti-FcRn blocker yielded encouraging preliminary data from an open-label evaluation phase in patients with difficult-to-treat rheumatoid arthritis, tracking Week 16 response metrics of 72.7% at the ACR20 benchmark, 54.5% at ACR50, and 35.8% at ACR70.

Parallel clinical developments across the pipeline remained active through the end of the fiscal year.

A proof-of-concept study evaluating IMVT-1402 for cutaneous lupus erythematosus reached full enrollment during the quarter, with topline data expected to be unblinded during the second half of calendar year 2026.

Management also confirmed that broader registrational studies across four separate indications—including myasthenia gravis and Sjögren's disease—remain on track for target data readouts over the next 24 months.