2. Roivant Sciences Ltd. (NASDAQ:ROIV)
Market Capitalization as of September 27: $8.51 billion
Number of Hedge Fund Holders: 62
Roivant Sciences Ltd. (NASDAQ:ROIV) is a healthcare company focused on applying technology to drug development and building subsidiary biotech and healthcare technology companies, utilizing a unique business model called “Vants” to accelerate drug development and commercialization. It partners with academic institutions and pharmaceutical companies to identify and develop promising drug candidates. The therapeutic areas of focus include oncology, immunology, neurology, and ophthalmology.
The company has 3 promising drug candidates under development through its Immunovant subsidiary. These drugs target autoimmune diseases, pulmonary hypertension, and psoriasis. Recently, it entered into a $1.2 billion deal for its Dermavant business in September, receiving $175 million upfront to support operations and research.
Potential catalysts for the company include successful clinical trials for its drugs, such as IMVT-1402, which may expand its treatment indications. Additionally, a patent win against Moderna and Pfizer could result in significant revenue. Revenue in FQ1 2025 was $55.13 million, up 154.96% from the year-ago period.
It recently received a $28 million milestone payment related to the Japanese approval of VTAMA. Additionally, it received its portion of $110 million from Roche for Telavant. In the first quarter of fiscal 2025, management had announced an upcoming Phase 2 program and mentioned progress with its IP litigation at Genevant regarding COVID-19 vaccine discovery.
Roivant Sciences Ltd.’s (NASDAQ:ROIV) success depends on its ability to commercialize drugs and maintain a robust pipeline. Recent deals and positive clinical data have positioned it for potential growth.
Greenlight Capital stated the following regarding Roivant Sciences Ltd. (NASDAQ:ROIV) in its first quarter 2024 investor letter:
“We established a small long position in Roivant Sciences Ltd. (NASDAQ:ROIV). ROIV is a biotech company focused primarily on inflammation and immunology therapies. In addition to an exciting pipeline, ROIV has a strong track record of positive trial results and successful monetization of pharmaceutical assets. The market currently believes core ROIV is effectively worthless, as the company has a market capitalization of about $9 billion, but holds over $6 billion of net cash and a $2.6 billion stake in its publicly traded subsidiary, Immunovant (IMVT). We believe there are several valuable assets inside the company, notably a broad patent estate around lipid nanoparticles used in COVID vaccines for which Moderna and Pfizer may owe ROIV several billion dollars in royalties, a potential multi-billion-dollar specialty autoimmune disease drug that recently passed its 7th successful Phase 2 trial and a novel topical agent to treat skin conditions such as psoriasis and atopic dermatitis. Additionally, we believe there are several other promising earlier stage assets inside ROIV. Lastly, the management team continues to find new opportunities to in-license from larger pharmaceutical companies. ROIV recently announced a $1.5 billion share repurchase program. We acquired our shares at an average price of $10.96. ROIV ended the quarter at $10.54.”
