NEW YORK -On Wednesday, Roivant Sciences Ltd. (NASDAQ:ROIV) reported fourth-quarter adjusted earnings per share of $0.28, significantly exceeding analyst estimates of -$0.29, though revenue of $2.52 million fell short of the $3.76 million consensus.
Shares of the biotech company surged 9.89% in pre-market trading following the results, as investors responded positively to the earnings beat and encouraging clinical trial data.
The company’s strong earnings performance was driven by a $770.2 million gain from a litigation settlement with Moderna, partially offset by increased research and development expenses. Revenue declined 67% YoY from $7.57 million in the prior-year quarter.
The company reported income from continuing operations of $355.7 million, compared to a loss of $252.4 million in the same period last year.
"The positive Period 1 data from the IMVT-1402 trial in D2T RA demonstrate exciting potential for a new, differentiated mechanism to treat RA patients who have failed multiple prior therapies," said Matt Gline, CEO of Roivant.
The company announced promising results from its IMVT-1402 trial in difficult-to-treat rheumatoid arthritis, showing response rates of 72.7% ACR20, 54.5% ACR50, and 35.8% ACR70 at Week 16.
Additionally, the FDA granted brepocitinib Breakthrough Therapy Designation for cutaneous sarcoidosis based on positive Phase 2 data.
Roivant reported consolidated cash, cash equivalents, and marketable securities of $4.3 billion as of March 31, 2026, supporting operations into profitability.
The company expects to launch brepocitinib in dermatomyositis by the end of September 2026, with multiple clinical readouts anticipated in the second half of calendar year 2026.
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