Roivant stock is nearing a breakout Tuesday after the biotech company announced positive results in an eye-disease study and a $1.5 billion share repurchase.
The company enrolled 26 patients with noninfectious uveitis, a condition that causes inflammation in one or both eyes. Roivant Sciences measured the percentage of patients who failed to benefit from its treatment regimen after 24 weeks. Lower treatment failure is considered positive.
In the high-dose group, 29% of patients had treatment failure. The low-dose group had a 44% treatment failure rate. Leerink Partners analyst David Risinger called the results "extremely positive." The study was designed to succeed if fewer than 70% of patients had treatment failure at the high dose.
In AbbVie's final-phase study of blockbuster inflammation drug Humira, 62% of patients had treatment failure after 25 weeks. Notably, those patients had a slower taper period from the steroids that usually treat noninfectious uveitis.
Roivant stock popped 4.7% to 10.92 on the stock market today. Shares are zeroing in on a buy point at 12 out of a cup-with-handle base, according to MarketSurge.com. Roivant stock leapfrogged its 50-day moving average.
Roivant Stock: Rivaling AbbVie
Traditionally, patients with noninfectious uveitis undergo steroid treatment. Roivant stacked its drug on top of steroids. Patients received prednisone for eight weeks before tapering off. In comparison, AbbVie reduced and stopped steroid treatment after 15 weeks.
Treatment failure is a standard goal in uveitis studies, Roivant Chief Executive Matt Gline told Investor's Business Daily by email.
"'Treatment failure' is what it sounds like — a measure of patients who are getting worse/not successfully responding to therapy," he said. "Our goal is for lower rates of treatment failure. This is the standard (goal) for uveitis studies, which is why we've used it here."
Leerink's Risinger noted safety was in line with previous studies. The company is planning to begin a final-phase study in the second half of the year. He kept his outperform rating on Roivant stock.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
