J.P. Morgan analyst Brian Cheng has maintained their bullish stance on ROIV stock, giving a Buy rating on June 18.
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Brian Cheng has given his Buy rating due to a combination of factors, primarily focusing on the potential of Roivant Sciences’ drug, brepo, in the treatment of dermatomyositis (DM). The drug is anticipated to become the preferred choice among JAK inhibitors if the VALOR study yields positive results, which would likely enhance its adoption in clinical practice. The dual mechanism of action targeting TYK2 and JAK1 offers a unique differentiation that could sway physician preference once brepo is commercially available.
Additionally, there is a significant financial opportunity for Roivant Sciences with the ongoing Moderna LNP case, where a favorable outcome could result in a substantial payout. Roivant’s ownership stake in Genevant and ABUS suggests that the company could receive a large portion of the potential $5 billion compensation. These factors combined with the existing familiarity of JAK inhibitors in the DM space contribute to the optimistic outlook for Roivant Sciences, justifying the Buy rating.
According to TipRanks, Cheng is an analyst with an average return of -18.8% and a 35.20% success rate. Cheng covers the Healthcare sector, focusing on stocks such as Blueprint Medicines, Intellia Therapeutics, and Roivant Sciences.