1. Roivant Sciences Ltd. (NASDAQ:ROIV)
Number of Hedge Fund Holders In Q2 2024: 62
Share Price: $11.56
Roivant Sciences Ltd. (NASDAQ:ROIV) is a healthcare firm that deals with intellectual property and biotechnology drug development. It owns a wide portfolio of drug companies and has stakes in 11 companies. Consequently, the firm depends on securing royalty payments and developing new drugs to generate revenue. Just as with any other biotechnology company, Roivant Sciences Ltd. (NASDAQ:ROIV)’s hypothesis rests on its ability to develop and commercialize drugs. On this front, the firm’s Immunovant subsidiary currently has three treatments under development. These target heart problems stemming from lung disease, immune system disorders, and Graves disease. The three treatments are called mosliciguat, IMVT-1402, and brepocitinib, respectively. Mosliciguat made some progress in September, when data showed a 38% resistance which was one of the best of its kind according to Roivant Sciences Ltd. (NASDAQ:ROIV). The firm’s shares can see further tailwinds if drugs like IMVT-1402 are able to target additional diseases such as polyneuropathy and anemia. Additionally, Roivant Sciences Ltd. (NASDAQ:ROIV) could see multi billion dollar payouts from Pfizer and Moderna through litigation surrounding lipid nanoparticles for the COVID vaccines.
Roivant Sciences Ltd. (NASDAQ:ROIV)’s management shared key details for IMVT-1402 during the Q1 2025 earnings call:
“We really do believe that IMVT-1402 has a potentially best-in-class profile here. That comes, obviously, first and foremost, from our ability to suppress IgG as deeply or deeper than any of the other anti-FcRn antibodies in our view, without any impacts on things like albumin and LDL, which obviously was something that affected our first generation program.
And then I think it’s worth remembering we are also going to be able to launch in all likelihood IMVT-1402 in an auto-injector, it will be a simple subcutaneous injection that should enable self-administration at home, subject to FDA being okay with that. And we think that will be a really compelling format for patients and a differentiated option versus where — certainly where the field is right now, and our sense is potentially differentiated relative to even where the field will be in a couple of years.”
ROIV tops our list of best NASDAQ stocks under $20. While we acknowledge the potential of ROIV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ROIV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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