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Roivant Sciences (ROIV)
NASDAQ:ROIV
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Roivant Sciences
(NASDAQ:ROIV)
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Rating:61Neutral
Price Target:
$30.00
▲(5.30% Upside)
Action:ReiteratedDate:02/07/26
The score is driven most by mixed financial performance (strong, low-debt balance sheet but ongoing losses and cash burn). Offsetting this, the earnings call was notably positive on clinical progress and upcoming catalysts with substantial cash runway, and technicals show an established uptrend, though near-term momentum looks stretched. Valuation is constrained by lack of profitability (negative P/E).
Positive Factors
Strong cash runway and low leverage
A consolidated cash balance of $4.5B and very low debt (debt-to-equity ~2%) provide durable financial flexibility to fund multiple pivotal trials, regulatory filings, and initial commercial activities without near-term refinancing, reducing capital risk over the next 2–6 months.
Broad, multi-indication pipeline with planned registrational programs
Management’s cadence of 9+ pivotal readouts and active registrational programs (NIU, dermatomyositis, cutaneous sarcoidosis, others) diversifies binary risk across indications and creates multiple structural value inflection points that can sustain the business model beyond any single program.
Convincing proof-of-concept efficacy with favorable safety
A statistically significant, large effect size in a randomized Phase II with supportive PROs and no SAEs strengthens the scientific rationale for brepocitinib across orphan inflammatory indications, lowering biological risk ahead of confirmatory trials and making the program structurally more investible.
Negative Factors
Persistent negative cash flow and cash burn
Operating and free cash flow remain negative across periods, indicating the company cannot self-fund operations from core activities. Over 2–6 months this structural cash burn necessitates continued reliance on existing cash reserves or capital markets, constraining strategic optionality if trials incur delays.
Contracting and volatile revenue with negative margins
Revenue contraction and uneven top-line trends, coupled with deeply negative net margins despite strong gross margins, signal the business is not yet generating sustainable commercial profits. This structural weakness increases dependence on pipeline success and external funding over the medium term.
Execution and regulatory confirmation risk
The pivotal program is dependent on replicating large effects from a small (n=31) Phase II that had baseline imbalances; effect erosion or varying placebo behavior in larger, global Phase III trials would materially impact approval probability and commercial prospects, a persistent execution risk.
Roivant Sciences (ROIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.23B
Dividend YieldN/A
Average Volume (3M)6.18M
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-83.82%
EPS Growth-109.22%
CountryUS
Employees908
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.17
Shares Outstanding715,701,100
10 Day Avg. Volume5,020,788
30 Day Avg. Volume6,176,274
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)1.56
Price to Sales (P/S)251.93
P/FCF Ratio-8.67
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue1.46K
Enterprise Value/Gross Profit1.60K
Enterprise Value/Ebitda-19.15
Forecast
1Y Price Target
$32.00Price Target Upside12.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)-1.09
Revenue Forecast (FY)$9.20M
Roivant Sciences Business Overview & Revenue Model
Company DescriptionRoivant Sciences Ltd., a biopharmaceutical and healthcare technology company that researches and develops medicines. The company develops product candidates for the treatment of various therapeutics, including solid tumors, sickle cell diseases, hypophosphatasia, oncologic malignancies, psoriasis, atopic dermatitis, vitiligo, hyperhidrosis, acne, myasthenia gravis, warm autoimmune hemolytic anemia, thyroid eye diseases, sarcoidosis, and staph aureus bacteremia. The company was founded in 2014 and is based in London, the United Kingdom.
How the Company Makes MoneyRoivant Sciences generates revenue primarily through the development and commercialization of pharmaceutical products. The company makes money from several key revenue streams, including milestone payments from collaborations with pharmaceutical companies, royalties on product sales from its subsidiaries, and potential revenues from licensing agreements. Roivant often partners with larger pharmaceutical companies to co-develop drugs, which can provide upfront payments and shared profits. Additionally, the company may receive funding from investors and venture capitalists to support its research and development activities, further contributing to its financial resources.
Roivant Sciences Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 01, 2026
Earnings Call Sentiment Positive
The call presented a highly positive clinical development narrative — most notably a strong Phase II win for brepocitinib in cutaneous sarcoidosis with large effect sizes, supportive PROs and clean safety — together with multiple fully enrolled studies and a strong cash position. Key risks discussed include the small size and baseline imbalances of the CS trial (requiring Phase III confirmation), ongoing litigation (Moderna jury trial), high operating expenses and uncertainties around regulatory timelines, pricing and competition. On balance, the breadth of positive clinical results, enrollment momentum, and financial runway outweigh the execution and regulatory/legal risks.Q3-2025 Updates
Positive Updates
Strong Phase II efficacy in cutaneous sarcoidosis (brepocitinib)
Proof-of-concept, randomized (3:2:2) 16-week study (n=31) showed robust efficacy for brepocitinib 45 mg vs placebo with a placebo-adjusted CSAMI improvement of ~21.6 points (statistically significant). Key outcomes: 100% of patients on brepo 45 mg achieved ≥10-point CSAMI improvement (MCID = 5 points), 62% achieved CSAMI <5 (functional remission), separation from placebo observed as early as Week 4 and maintained through Week 16, consistent improvements on multiple PROs (Skindex-16, KSQ skin domain, patient global impression) and safety with no SAEs and only mild/moderate AEs.
Pipeline and regulatory progress for brepocitinib
Multiple registrational programs in motion: NDA submitted for dermatomyositis, active pivotal programs in NIU and dermatomyositis, Phase III planned to start this year for cutaneous sarcoidosis, and management cites 9+ pivotal readouts expected across programs — positioning brepocitinib as a multi-indication asset across high-unmet-need orphan inflammatory diseases.
Clinical enrollment momentum across portfolio
Several trials are fully enrolled or upsized: IMVT‑1402 DTRA study enrolled 170 patients (upsized from 120, +41.7%), D2T RA and the PH‑ILD (mosli/mostly) studies are fully enrolled — accelerating the timeline for multiple readouts expected later in 2026 and 2027.
Favorable safety profile supported by broader database
Cutaneous sarcoidosis study reported no SAEs and only mild/moderate AEs; company references an overall brepocitinib safety database of >1,500 patients supporting a potentially favorable benefit–risk profile for the indications pursued.
Strong cash position and runway
Consolidated cash of $4.5 billion provides substantial capital to fund ongoing and planned clinical programs and near-term commercial activities; company retains share buyback authorization.
Legal procedural win ahead of trial
Favorable summary judgment ruling on Section 1498 in the Moderna litigation was obtained ahead of the March 9 jury trial, improving aspects of Roivant's asserted case coverage for the litigation.
Negative Updates
Small Phase II sample size and baseline imbalances
Cutaneous sarcoidosis POC study included only 31 patients across 15 sites. Management noted baseline imbalances (longer disease duration and more plaque‑predominant, treatment‑resistant morphology in the 45 mg arm versus 15 mg and placebo) that complicate cross‑arm comparisons and increase reliance on replication in larger Phase III trials.
Risk of effect erosion in larger/global trials
Study was not powered for efficacy and had a very low placebo response; management acknowledged the possibility that placebo behavior or effect sizes could change in larger, global Phase III trials, introducing execution and regulatory risk despite the large effect observed in this small trial.
High operating expenses and continued GAAP losses
Reported R&D expense of $165 million (adjusted non‑GAAP $147 million) and G&A of $175 million (adjusted non‑GAAP $71 million). Total non‑GAAP net loss was $167 million for the quarter. Adjustments reduce R&D by ~10.9% to non‑GAAP and G&A by ~59.4% to non‑GAAP, but cash burn and near‑term losses remain material.
Ongoing litigation and legal uncertainties
Moderna jury trial scheduled to start March 9; multiple Daubert motions pending and outcomes uncertain. While a favorable Section 1498 ruling is positive, litigation represents a material binary risk that could affect business or finances.
Commercial and competitive uncertainties
Price and commercial positioning for brepocitinib are not yet decided (management referenced a pricing envelope between IVIG and Vyvgart as illustrative). Competitive threats and strategic complexities exist (e.g., potential Argenx moves in adjacent indications, sotatercept relevance for PH‑ILD, and Pfizer’s 25% JV ownership requiring below‑the‑line minority interest accounting), all adding commercialization uncertainty.
Company Guidance
Management laid out a catalyst‑rich 2026: brepocitinib already has an NDA in dermatomyositis and a Phase III in cutaneous sarcoidosis will start this year after a 31‑patient Phase II that showed a placebo‑adjusted CSAMI delta of ~21.6 points (statistically significant), 100% of 45 mg patients achieved ≥10‑point improvement, 62% reached CSAMI <5, with separation vs placebo as early as Week 4 and no SAEs (all AEs mild/moderate); a pivotal NIU Phase III readout is expected in H2 2026; Phase IIb mosli (PH‑ILD) and IMVT‑1402 D2T RA studies are fully enrolled (IMVT‑1402 DTRA enrolled 170 v. planned 120) with data expected in H2 2026, POC reads in 1402 and CLE are planned this year, and the Moderna jury trial begins March 9; financials for the quarter were R&D $165M (adj. $147M), G&A $175M (adj. $71M), non‑GAAP net loss $167M and $4.5B cash, and management reiterated 9+ pivotal readouts and multiple potential commercial launches over the coming years.Roivant Sciences Financial Statement Overview
Summary
Balance sheet strength (very low leverage and sizable equity) is a clear positive, but it is outweighed by weak operating fundamentals: contracting/volatile revenue, deeply negative margins, and persistent negative operating and free cash flow indicating ongoing cash burn and reliance on capital/monetization.Income Statement
Revenue has been volatile and is contracting, with TTM (Trailing-Twelve-Months) revenue down ~35% and multiple years of uneven growth. Despite very strong gross margins (mid‑90% range in recent periods), profitability is weak: TTM net margin is deeply negative and operating losses remain substantial. The 2024 annual period shows an outsized net profit that looks non-recurring versus the surrounding loss-making years, which reduces confidence in earnings consistency.28
Negative
Balance Sheet
The balance sheet is a relative strength. Leverage is low, with debt-to-equity around ~2% in the latest annual and TTM (Trailing-Twelve-Months) periods, and equity is sizeable versus total assets. While returns on equity are negative in most periods (reflecting ongoing losses), the company appears well-capitalized with limited balance-sheet debt risk.78
Positive
Cash Flow
Cash generation is weak, with operating cash flow and free cash flow consistently negative across all shown periods, indicating ongoing cash burn. Free cash flow deterioration in TTM (Trailing-Twelve-Months) (down ~2% vs the prior period) adds pressure, and cash outflows are not yet stabilizing. While cash burn tracks reported losses in direction, the business has not demonstrated sustainable cash self-funding.32
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.31M | 29.05M | 32.71M | 61.28M | 55.29M | 23.80M |
| Gross Profit | 12.14M | 28.14M | 31.11M | 48.15M | 46.32M | 21.74M |
| EBITDA | -1.02B | -1.10B | -802.89M | -1.18B | -910.77M | -720.58M |
| Net Income | -809.24M | -171.98M | 4.35B | -1.01B | -845.26M | -809.23M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.44B | 7.22B | 2.39B | 2.59B | 2.69B |
| Cash, Cash Equivalents and Short-Term Investments | 4.53B | 4.89B | 6.54B | 1.68B | 2.06B | 2.13B |
| Total Debt | 207.44M | 100.17M | 499.75M | 481.40M | 283.89M | 244.98M |
| Total Liabilities | 251.14M | 249.74M | 773.95M | 782.02M | 523.70M | 527.69M |
| Stockholders Equity | 4.27B | 4.69B | 5.97B | 1.16B | 1.66B | 1.90B |
Cash Flow | ||||||
| Free Cash Flow | -766.86M | -844.05M | -766.65M | -856.08M | -695.16M | -557.94M |
| Operating Cash Flow | -759.10M | -839.45M | -765.27M | -843.39M | -677.73M | -552.14M |
| Investing Cash Flow | 257.62M | -1.77B | 5.20B | -44.27M | 303.30M | -31.70M |
| Financing Cash Flow | -13.39M | -1.22B | 419.36M | 499.46M | 306.79M | 456.26M |
Roivant Sciences Technical Analysis
Positive
28.49
Price Trends
23.71
Positive
21.50
Positive
16.76
Positive
Market Momentum
1.52
Negative
71.86
Negative
85.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROIV, the sentiment is Positive. The current price of 28.49 is above the 20-day moving average (MA) of 25.68, above the 50-day MA of 23.71, and above the 200-day MA of 16.76, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 71.86 is Negative, neither overbought nor oversold. The STOCH value of 85.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROIV.
Roivant Sciences Risk Analysis
Roivant Sciences disclosed 98 risk factors in its most recent earnings report. Roivant Sciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Roivant Sciences Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.30B | 28.23 | 153.59% | ― | 31.19% | 59.01% | |
69 Neutral | $10.56B | -32.97 | -8.47% | ― | 4.14% | -179.96% | |
67 Neutral | $3.84B | 44.27 | 14.79% | ― | 17.92% | -26.13% | |
65 Neutral | $9.01B | 112.04 | 3.96% | 0.54% | 3.85% | -48.17% | |
61 Neutral | $20.23B | -24.53 | -17.11% | ― | -83.82% | -109.22% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ROIV
Roivant Sciences
28.94
18.20
169.46%
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JAZZ
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190.02
46.49
32.39%
TECH
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59.00
-2.39
-3.89%
Roivant Sciences Corporate Events
Business Operations and StrategyPrivate Placements and FinancingProduct-Related Announcements
Roivant Sciences Highlights Pipeline Progress at Investor Day
Positive
Dec 11, 2025
On December 11, 2025, Roivant Sciences hosted its Investor Day, highlighting significant progress in its pipeline and outlining its growth strategy. The company announced plans for multiple product launches and filings over the next three years, including brepocitinib for dermatomyositis, with a commercial launch expected in early 2027. Roivant also reported positive updates on clinical trials, including accelerated timelines for brepocitinib in non-infectious uveitis and cutaneous sarcoidosis, as well as the IMVT-1402 trial for rheumatoid arthritis. Additionally, Roivant’s financing efforts have extended Immunovant’s cash runway to support the launch of IMVT-1402 in Graves’ disease, positioning the company for long-term shareholder value creation.
The most recent analyst rating on (ROIV) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Roivant Sciences stock, see the ROIV Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.