Optimistic Outlook for Roivant Sciences Driven by Promising Brepocitinib Results in Phase 3 VALOR Study

Leerink Partners analyst David Risinger has maintained their bullish stance on ROIV stock, giving a Buy rating yesterday.

David Risinger has given his Buy rating due to a combination of factors including the promising potential of brepocitinib, a dual JAK1/TYK2 inhibitor, in treating dermatomyositis (DM) as demonstrated in the Phase 3 VALOR study. The trial is notable for being the largest and longest placebo-controlled study ever conducted for DM, and the positive outcomes from previous trials in various autoimmune conditions bolster confidence in its success.
Furthermore, the implementation of a stringent steroid taper protocol in the VALOR trial, which achieved a high adherence rate, underscores brepocitinib’s potential clinical benefits. The management’s strategic approach to reducing steroid use among participants highlights the drug’s capability to manage placebo response effectively. These factors, along with the projected significant revenue from brepocitinib in DM and its evaluation in other conditions like non-infectious uveitis and cutaneous sarcoidosis, support the optimistic outlook for Roivant Sciences.

ROIV’s price has also changed slightly for the past six months – from $11.690 to $11.440, which is a -2.14% drop .