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Roivant Sciences (ROIV)
NASDAQ:ROIV
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Roivant Sciences
(NASDAQ:ROIV)
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Rating:59Neutral
Price Target:
$23.00
▲(0.13% Upside)
The score is held back primarily by weak current financial performance (declining revenue, ongoing losses, and pressured cash generation). Offsetting this, the earnings call and recent updates point to meaningful late-stage clinical progress, clear regulatory timelines, and strong balance sheet support. Technicals are moderately constructive, while valuation is less supportive given negative earnings and no stated dividend yield.
Positive Factors
Large late-stage pipeline and 36-month catalyst runway
A broad set of 11 potentially registrational programs with a staged 36-month catalyst calendar materially reduces single-asset binary risk. Multiple near-term readouts and filings can progressively de-risk pipeline value, enable sequential revenue streams, and support sustained growth if trials succeed.
Strong liquidity and low leverage
Having $4.4B cash and no debt provides durable financial flexibility to fund late-stage development, regulatory filings, and initial commercial launch costs without urgent external financing. This extends runway, supports execution through key 2026–2027 milestones, and enables strategic investments or M&A.
Very high gross margin (96.4% TTM)
A 96.4% gross margin indicates attractive underlying product economics or low COGS on recognized revenue streams. If Roivant converts late-stage assets into approved products, these margins support durable profitability leverage as revenue scales, aiding long-term margin sustainability once commercialization begins.
Negative Factors
Declining revenue and persistent operating losses
Falling revenue and a materially negative net margin reflect that current operations are not yet self-sustaining. Until pivotal programs convert to commercial sales, ongoing R&D and SG&A losses can erode reserves and force prioritization or asset sales, raising execution risk over the coming 2–6 months.
Negative free cash flow trend and cash generation pressure
A declining free cash flow trajectory shows development and commercial investments outpacing cash generation. Even with large cash balances, persistent negative FCF increases dependence on external financing or asset monetization to fund launches, which can constrain strategic flexibility during commercialization phases.
Material litigation and regulatory uncertainty
Active legal cases (Moderna/Pfizer/Genevant) with trials and international proceedings introduce the risk of damages, injunctions or altered commercial arrangements. Outcomes and timing are uncertain and could materially affect manufacturing, partnerships or costs, creating sustained strategic and financial risk.
Roivant Sciences (ROIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.98B
Dividend YieldN/A
Average Volume (3M)7.23M
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth-83.82%
EPS Growth-109.22%
CountryUS
Employees908
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.20
Shares Outstanding695,491,640
10 Day Avg. Volume6,092,958
30 Day Avg. Volume7,233,892
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 Cap0.93
Enterprise Value/Revenue729.86
Enterprise Value/Gross Profit757.00
Enterprise Value/Ebitda-14.88
Forecast
1Y Price Target
$27.63Price Target Upside20.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-1.14
Revenue Forecast (FY)$15.24M
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:Nov 10, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Positive
The call conveyed substantial scientific and clinical progress with multiple high-impact data readouts (notably brepocitinib VALOR in dermatomyositis and durable batoclimab signals in Graves'), a deep late-stage pipeline, strong cash ( $4.4B ) and clear near-term regulatory and commercial catalysts. Offsetting risks include competitive intensity in Graves' and TED, litigation uncertainty (Moderna/Pfizer LNP cases), small sample sizes in some proof-of-concept cohorts, and translatability risks for certain programs (e.g., mosli in PH-ILD). Overall, the highlights — including positive pivotal data, pipeline breadth and a strong balance sheet — outweigh the notable but manageable risks described.Q2-2025 Updates
Positive Updates
Brepocitinib (VALOR) — Strong Phase III Results in Dermatomyositis
VALOR hit all 10 ranked endpoints with highly significant, consistent results; clear dose response supporting 30 mg as optimal. Rapid, deep, broad clinical benefit on mean TIS versus placebo; >33% of brepo 30 patients achieved both major TIS responses and minimal/no steroid burden at week 52; >50% achieved TIS40 with very low dose oral steroids. NDA filing on track for first half of next year.
Batoclimab / 1402 — Durable Remission Signals in Graves' Disease
In a 25-patient cohort, 20/25 responders after 12 weeks (high dose), 18/25 after low-dose phase, and 17/21 responders at week 48 off drug (6 months). Nearly half of off-drug responders were fully off antithyroid drugs (ATDs) and >75% were on only the lowest ATD doses or off ATDs. TRAb reductions were durable despite IgG returning toward baseline by week 48; deeper IgG suppression (>70% reduction) associated with ~3x higher off-ATD rates vs <70%.
Large Late-Stage Pipeline and Near-Term Catalyst Runway
Company highlights 11 potentially registrational trials and a stacked 36-month catalyst runway (DM, NIU, multiple 1402 indications including Graves', MG, CIDP, D2T RA, Sjögren's, CLE). Several readouts anticipated in 2026–2027 (e.g., NIU and some 1402 programs).
Strong Balance Sheet and Capital Actions
$4.4 billion in cash and cash equivalents, no debt, loss from continuing operations net of tax of $166 million for the quarter. Company authorized a $500 million share repurchase and has materially reduced share count via buybacks.
Immunovant / 1402 Program Momentum
Initiated or running potentially registrational trials across Graves', myasthenia gravis, CIDP, difficult-to-treat RA and Sjögren's, plus a POC trial in CLE — positioning 1402 for multiple blockbuster opportunities.
Legal Progress — Favorable Rulings and Trial Calendar
Favorable Markman ruling in the Pfizer/Genevant case; Moderna jury trial currently scheduled for March 2026. Multiple international (OUS) proceedings and hearings expected in 1H 2026.
Pulmovant (mosli) — Meaningful PVR Reduction in PH
Mosli showed a 38% PVR reduction in pulmonary hypertension trials; Phase II PH-ILD study readout expected in H2 next year, with cautious optimism on translatability from PAH data.
Negative Updates
Evolving Competitive Intensity in Graves' and TED
argenx and other competitors are advancing into Graves' (and argenx may pursue both Graves' and TED), increasing competitive pressure; company is deliberately timing topline reporting and monitoring competitor moves. IGF-1R and other mechanisms (including IL-6 class) present alternative competitive profiles in TED.
Small Sample Size and Data Readout Timing for Batoclimab
Key durability findings for batoclimab come from a small cohort (25 patients initial, 21 with week-48 follow-up), which increases uncertainty until larger registrational data are available; TED topline will be held to pair with second study, delaying visibility.
Litigation and Regulatory Uncertainty
Ongoing LNP litigation presents timing and outcome risk (Moderna summary judgment issues, 1498/government involvement questions). Outcomes of Moderna and Pfizer cases, and international rulings, remain uncertain and could materially affect damages or strategy.
Translatability Risk for Mosli in PH-ILD
While mosli showed 38% PVR reduction in PAH, translation to PH-ILD carries risk (e.g., V/Q mismatch concerns). Company notes cautious optimism but awaits Phase IIb data for confirmation.
Near-Term Financial Loss and Execution Needs
Quarterly loss from continuing operations of $166 million underscores ongoing R&D and development costs; timely NDA submission, successful regulatory interactions and execution on planned launches are required to realize pipeline value.
Competitive Efficacy/Safety Differentiation Still to Be Proven
While FcRn mechanism shows attractive safety/tolerability and mechanistic fit (esp. in Graves'), head-to-head differentiation vs other emerging modalities (e.g., IGF-1R in TED, VYVGART in MG) remains to be demonstrated in larger studies and in real-world uptake.
Company Guidance
Roivant's call provided concrete timing and numeric guidance: brepocitinib's NDA is on track for submission in H1 2026 (30 mg selected after VALOR, which hit all 10 ranked endpoints), with potential registration/launch timing around H1 2027 (NIU readout guided to H1 2027 and sNDA to follow); 30 mg brepo produced rapid, deep responses (>1/3 of brepo‑30 patients achieved major TIS plus minimal/no steroid at Week 52 and >50% achieved TIS40 with very low steroids); 1402 (batoclimab) showed durable effects in the small remission study (20/25 responders at 12 weeks, 18/25 at 24 weeks, 17/21 off‑drug responders at Week 48, nearly half off ATDs and >75% on lowest dose or off); TED top‑line will be held to report with the second study (expected H1 next year); Pulmovant (mosli) Phase II PH‑ILD data expected H2 next year; legal timelines include a Moderna jury trial in March 2026, international proceedings in H1 2026 and a favorable Markman in the Pfizer case; and financials/capital: $4.4 billion cash and cash equivalents, no debt, a loss from continuing operations of $166 million (net of tax) this quarter, ~11 potentially registrational programs in the late‑stage pipeline, a 36‑month stacked catalyst roadmap, and a $500 million authorized share‑repurchase.Roivant Sciences Financial Statement Overview
Summary
Weak fundamentals: revenue decline (-12.5% TTM), significant losses (net margin -18.4%) and negative operating profitability (EBITDA/EBIT margins negative). Positives are strong gross margin (96.4% TTM) and low leverage (debt-to-equity 0.0227), but cash flow is pressured (free cash flow growth -8.65% TTM).Income Statement
Roivant Sciences shows a declining revenue trend with a negative revenue growth rate of -12.5% TTM. The company has a high gross profit margin of 96.4% TTM, indicating efficient cost management. However, the net profit margin is significantly negative at -18.4% TTM, reflecting substantial losses. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.45
Neutral
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.0227 TTM, indicating low leverage and financial stability. However, the return on equity is negative at -8.05% TTM, highlighting poor profitability. The equity ratio is not provided, but the low debt levels suggest a strong equity position.55
Neutral
Cash Flow
Roivant Sciences has a negative free cash flow growth rate of -8.65% TTM, indicating declining cash generation. The operating cash flow to net income ratio is negative, suggesting cash flow challenges. However, the free cash flow to net income ratio is slightly positive at 1.02 TTM, indicating some alignment between cash flow and reported earnings.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.33M | 29.05M | 32.71M | 61.28M | 55.29M | 23.80M |
| Gross Profit | 19.60M | 28.14M | 31.11M | 48.15M | 46.32M | 21.74M |
| EBITDA | -996.95M | -1.10B | -802.89M | -1.18B | -910.77M | -720.58M |
| Net Income | -373.97M | -171.98M | 4.35B | -1.01B | -845.26M | -809.23M |
Balance Sheet | ||||||
| Total Assets | 5.06B | 5.44B | 7.22B | 2.39B | 2.59B | 2.69B |
| Cash, Cash Equivalents and Short-Term Investments | 4.39B | 4.89B | 6.54B | 1.68B | 2.06B | 2.13B |
| Total Debt | 98.85M | 100.17M | 499.75M | 481.40M | 283.89M | 244.98M |
| Total Liabilities | 257.14M | 249.74M | 773.95M | 782.02M | 523.70M | 527.69M |
| Stockholders Equity | 4.36B | 4.69B | 5.97B | 1.16B | 1.66B | 1.90B |
Cash Flow | ||||||
| Free Cash Flow | -784.38M | -844.05M | -766.65M | -856.08M | -695.16M | -557.94M |
| Operating Cash Flow | -769.86M | -839.45M | -765.27M | -843.39M | -677.73M | -552.14M |
| Investing Cash Flow | 562.97M | -1.77B | 5.20B | -44.27M | 303.30M | -31.70M |
| Financing Cash Flow | -575.28M | -1.22B | 419.36M | 499.46M | 306.79M | 456.26M |
Roivant Sciences Technical Analysis
Positive
22.97
Price Trends
21.58
Positive
18.87
Positive
15.01
Positive
Market Momentum
0.49
Negative
58.86
Neutral
63.43
Neutral
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 22.97 is above the 20-day moving average (MA) of 22.38, above the 50-day MA of 21.58, and above the 200-day MA of 15.01, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 63.43 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $8.28B | 14.99 | 124.50% | ― | 31.19% | 59.01% | |
64 Neutral | $3.71B | 47.19 | 16.47% | ― | 17.92% | -26.13% | |
64 Neutral | $10.20B | -28.17 | -9.06% | ― | 4.14% | -179.96% | |
64 Neutral | $10.84B | 145.90 | 3.80% | 0.54% | 3.85% | -48.17% | |
59 Neutral | $15.98B | -41.57 | -14.73% | ― | -83.82% | -109.22% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ROIV
Roivant Sciences
22.97
11.76
104.91%
CORT
Corcept Therapeutics
41.30
-20.99
-33.70%
HALO
Halozyme
71.29
15.66
28.15%
JAZZ
Jazz Pharmaceuticals
171.00
48.52
39.61%
TECH
Bio-Techne
69.65
-6.93
-9.05%
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.