Immunovant Could Potentially Be An M&A Target, Writes Analyst

Cantor Fitzgerald initiated coverage on Immunovant Inc IMVT with an Overweight rating and a price target of $30.
The company's pipeline includes batoclimab (IMVT-1401) and IMVT-1402, fully human, monoclonal antibodies targeting the neonatal fragment crystallizable receptor (FcRn).
Batoclimab has demonstrated its potential to reduce immunoglobulin G (IgG) antibodies that cause inflammation, while IMVT-1402 has also demonstrated profound IgG antibody reduction in animal studies.
Related: Immunovant's New Candidate Provides Some Strategic Flexibility & Clarity, Analysts Say.
Expected positive data readouts beginning in 2023+ from batoclimab and IMVT-1402 trials could drive shares higher, potentially narrowing the valuation gap between IMVT's market cap and its competitors, such as Argenyx SE ARGX.
Additionally, IMVT could attract potential strategic interest, as evidenced by Johnson & Johnson's JNJ 2020 acquisition of anti-FcRn company Momenta Pharma for $6.5 billion.
IMVT's parent company Roivant Sciences Ltd ROIV, indicated in its 3Q22 earnings call that it would take a commercial view of any potential M&A inquiry relating to the company.
Price Action: IMVT shares are down 3.79% at $17.89 on the last check Wednesday.

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