Immunovant Widens Loss as IMVT-1402 Spending Accelerates
Immunovant's net loss grew 27% to $153.2 million in its fiscal first quarter as research spending on lead candidate IMVT-1402 rose 41%.
Immunovant (IMVT) reported a net loss of $153.2 million, or $0.75 a share, for its fiscal first quarter ended June 30, 2026, widening 27% from a loss of $120.6 million, or $0.71 a share, a year earlier. The clinical-stage biotech attributed the gap to a buildup in spending behind IMVT-1402, its lead autoimmune-disease candidate, as the company shifts resources away from its earlier program, batoclimab.
Research and development expenses rose 41% to $142.6 million from $101.2 million, driven by IMVT-1402 clinical trial costs and contract manufacturing, partially offset by the wind-down of batoclimab trials. On a non-GAAP basis, R&D expenses climbed 45% to $135.4 million from $93.3 million. The increase outpaced revenue-generating activity, consistent with a company still years from commercializing a product.
General and administrative expenses moved in the opposite direction, falling 32% to $17.7 million from $26.0 million on lower personnel, professional fees, market research and IT costs. Non-GAAP G&A fell 27% to $11.2 million from $15.4 million. The decline partially offset the R&D increase but was not enough to prevent the net loss from widening, as non-GAAP net loss grew 37% to $139.4 million from $102.1 million.
Cash and cash equivalents declined 11.6% sequentially to $797.8 million at June 30, 2026, from $902.1 million at March 31, 2026. Total stockholders' equity fell 13.7% sequentially to $735.4 million from $852.6 million, as accumulated deficit grew to $1,898.4 million from $1,745.1 million. Accrued expenses and other current liabilities rose 10.4% sequentially to $106.96 million from $96.88 million, and accounts payable rose to $10.1 million from $7.5 million, reflecting the ramp in trial-related obligations.
Shares outstanding rose sequentially to 206,264,878 at June 30, 2026, from 203,940,353 at March 31, 2026. Weighted-average diluted shares climbed 20% year over year to 205,545,373 from 170,872,994, adding dilution on top of the wider net loss.
The quarter's results show a company allocating capital toward a single late-stage bet while its cash balance and equity cushion narrow. With roughly $798 million in cash against a quarterly burn rate implied by the widening loss, Immunovant's spending trajectory on IMVT-1402 will remain the figure to watch in coming quarters.