Roivant Sciences’ Growth Potential Highlighted by Upcoming Phase 3 VALOR Study for Brepocitinib

In a report released today, Douglas Tsao from H.C. Wainwright maintained a Buy rating on Roivant Sciences (ROIV – Research Report), with a price target of $18.00.

Douglas Tsao has given his Buy rating due to a combination of factors that highlight Roivant Sciences’ potential for growth. The upcoming Phase 3 VALOR study results for brepocitinib in treating dermatomyositis are seen as a significant catalyst that could expand the drug’s market opportunity. Brepocitinib’s unique mechanism of action, which targets both JAK1 and TYK2, sets it apart from other JAK inhibitors by offering broader efficacy and addressing a wider range of cytokines involved in dermatomyositis.
Moreover, the drug’s oral dosing and established safety profile in over 1,500 patients make it a strong candidate for approval, especially as it is further along in development compared to competitors. The unmet needs in dermatomyositis, such as the limited efficacy of current treatments and the side effects associated with chronic steroid use, underscore the necessity for novel therapies like brepocitinib. If the VALOR study yields positive results, brepocitinib could become the first approved JAK inhibitor for dermatomyositis, providing Roivant Sciences with a competitive edge in a growing market.

According to TipRanks, Tsao is a 4-star analyst with an average return of 8.4% and a 38.54% success rate. Tsao covers the Healthcare sector, focusing on stocks such as Arcutis Biotherapeutics, Protagonist Therapeutics, and Argenx Se.