12 Biotech Stocks with the Biggest Upside Potential

5. Immunovant, Inc. (NASDAQ:IMVT)

Analyst Upside: 106.02%

Number of Hedge Fund Holders: 36

Immunovant, Inc. (NASDAQ:IMVT) develops treatments for autoimmune diseases. Its product pipeline includes batoclimab and IMVT-1402. Both are novel antibodies targeting the neonatal fragment crystallizable receptor (FcRn).

The company’s primary focus is boosting the potential of its lead asset, IMVT-1402. With five Investigational New Drug (IND) applications cleared, it is set to initiate four to five potentially registrational clinical development programs by March 31, 2025. These INDs are anticipated to support IMVT-1402’s evaluation in various indications and therapeutic areas.

Immunovant, Inc. (NASDAQ:IMVT) is also expanding its IMVT-1402 development program into rheumatology. In addition, its development plans for Graves’ disease paint an optimistic picture for the company, as it currently does not have competition in the domain. As of September 30, 2024, the company has cash and cash equivalents of around $472.9 million, putting it in a position to continue investing in its processes.

It recently announced a $450 million private placement after selling 22,500,000 shares of common stock to three institutional accredited investors as part of a private investment in public equity (PIPE). The company plans to use PIPE’s proceeds to advance its working capital, development pipeline, and other corporate purposes. It ranks fifth on our list of the 12 biotech stocks with the biggest upside potential.

Baron Health Care Fund stated the following regarding Immunovant, Inc. (NASDAQ:IMVT) in its first quarter 2024 investor letter:

“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.”