Analyst Chi Meng Fong of Bank of America Securities maintained a Hold rating on Roivant Sciences, retaining the price target of $16.50.
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Chi Meng Fong’s rating is based on a balanced assessment of Roivant Sciences’ current position and future prospects. The company has shown promise with its commercial strategy for brepo in dermatomyositis, particularly after positive Phase 3 results. However, the launch is expected to be capital efficient, targeting a limited number of referral centers, which may limit immediate growth potential.
Additionally, while Roivant is confident in the development of IMVT-1402 for Graves disease and other autoimmune conditions, the competitive landscape, particularly with Argenx’s Vyvgart, presents challenges. The ongoing litigation concerning LNP technology against major players like Pfizer and Moderna adds another layer of uncertainty, with outcomes that could significantly impact Roivant’s financials. These factors combined lead to a Hold rating, reflecting a cautious approach given the balanced risk and reward scenario.
Based on the recent corporate insider activity of 116 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ROIV in relation to earlier this year.