10 Worst Performing Biotech Stocks in 2024

4. Immunovant, Inc. (NASDAQ:IMVT)

YTD Return: -30.52% 

Immunovant, Inc. (NASDAQ:IMVT) is a clinical-stage immunology company focused on developing innovative therapies for autoimmune diseases. The company’s primary focus is on creating anti-FcRn (neonatal Fc receptor) antibodies, specifically IMVT-1402 and batoclimab, which aim to reduce harmful immunoglobulin G (IgG) autoantibodies in patients with various autoimmune conditions.

Immunovant, Inc. (NASDAQ: IMVT) has faced stock price challenges due to concerns over competitor argenx SE’s failure in pemphigus vulgaris, raising doubts about the FcRn class’s market potential. Coupled with significant cash burn, these factors have affected investor confidence.

However, Wall Street remains optimistic about Immunovant, Inc. (NASDAQ:IMVT)’s long-term growth, particularly after the company shifted its focus to IMVT-1402 as its lead drug candidate. Experts believe this decision is strategic, as IMVT-1402 has the potential to be best-in-class and is expected to enter 4-5 potentially registrational trials in the coming fiscal year.

Recently, Immunovant, Inc. (NASDAQ:IMVT) reported positive results from its Phase 2a trial of batoclimab for Graves’ Disease, further boosting market optimism about addressing this large unmet commercial need.

Baron Funds, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:

“Somewhat offsetting the above was adverse stock selection in biotechnology and health care supplies coupled with cash exposure amid favorable market conditions. Weakness in biotechnology was mainly due to disappointing performance from Rocket Pharmaceuticals, Inc. and Immunovant, Inc. (NASDAQ:IMVT), whose shares fell double digits in the period. Immunovant is focused on autoimmune disorders targeting the FcRn mechanism of action. A host of concerns weighed on Immunovant’s stock price, the most critical of which was competitor argenx SE’s failure in pemphigus vulgaris, which has raised questions about the addressable opportunity for the FcRn class. Overall, we continue to believe FcRn will command billions in revenue and that Immunovant has one of the two competitive offerings in the space. We are most optimistic about Immunovant’s development plans in Graves’ disease, a large commercial unmet need in which they currently have no competition.”

Immunovant, Inc. (NASDAQ:IMVT) was a part of 36 hedge fund portfolios at the end of Q3 2024, compared with 41 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $685 million.