Upstart innovative drugmaker Roivant Sciences takes a novel approach to creating and selling new pharmaceuticals. Roivant creates a subsidiary to develop and commercialize each drug. It calls its subsidiaries vants. On Thursday the Relative Strength (RS) Rating for Roivant stock rose from 68 to 71.
The 71 RS Rating shows that Roivant stock outperformed more than 70% of stocks in IBD's database over the past year. It's a good but not yet great rating. The best growth stocks typically have an RS Rating of at least 80 as they launch their largest runs. See if Roivant Sciences can continue to rebound and clear that threshold.
Roivant Stock A Favorite Among Big Funds
Among other ratings Roivant stock has a 72 Composite Rating out of 99, and an outstanding A- Accumulation/Distribution Rating. The A- rating, on an A+ to E scale, shows that institutions such as mutual funds and insurance company funds are fairly heavy buyers of its stock. One yellow flag is its 38 EPS Rating, reflecting its continuing losses as it works toward profitability.
Roivant Sciences was founded in 2014 by entrepreneur Vivek Ramaswamy and went public in December 2020 in the midst of the Covid pandemic. Roivant has used its novel approach to developing and marketing drugs on over a dozen subsidiaries ranging from Immunovant, a majority-owned public company focused on autoimmune diseases, to some privately held vants.
"Our Vants have conducted 10 positive Phase 3 trials since 2019, and launched VTAMA, (tapinarof) cream, 1%, for the topical treatment of plaque psoriasis in adults," the company says on its website.
Roivant isn't profitable yet but is heading in that direction. Earnings have improved over the last four quarters. Last quarter Roivant reported a 17 cents a share loss, 39% better than the 28 cents a share loss a year earlier. The prior three quarters it reported 9%, 50% and 12% improvements.
Revenue the last four stanzas grew 196%, 118%, 6% and 155% in its most recent quarter, to $55.1 million.
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Still Inside A Buy Range
Roivant Sciences is still inside a buy range after moving past a 12 buy point in a cup with handle. Thursday afternoon Roivant traded just above 12, up fractionally for the day.
Roivant Sciences earns the No. 67 rank among its peers in the 731-stock Medical-Biomed/Biotech industry group. ADMA Biologics, United Therapeutics and Catalyst Pharmaceuticals are among the top five highly rated stocks in the group.
IBD's proprietary RS Rating measures technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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