JPMorgan's Take on Roivant Sciences (ROIV) Buyback and Positive Data Annoucement

JPMorgan analyst Brian Cheng reiterated an Overweight rating on Roivant Sciences (NASDAQ: ROIV).

The analyst comments "Before market open this morning, Roivant announced up to a $1.5bn stock buyback program and positive top-line data from its Ph 2 NEPTUNE brepocitinib study in non-infectious uveitis (NIU). We also spoke with ROIV’s CFO Richard Pulik before the company call at 8am. First, on brepocitinib data in NIU, we believe the data hit our home-run scenario as we laid out in our preview in mid-March (note). Notably, the treatment failure rates were 29% and 44%, respectively, for the high and low dose at week 24 – appearing significantly better, in our view, than the <50% failure rate that we had set as the bull case for the top line. Other endpoints also appear to be highly supportive as well. Safety, as we expected, did not see any red flags. Turning to the stock buyback, we weren’t surprised based on commentary from mgmt in the past few months. The size of the buyback meets the range (“one-third” of the cash reserve) we expected from our prior discussions. The sale of the Sumitomo block was executed at a decent discount to yesterday’s closing."

For an analyst ratings summary and ratings history on Roivant Sciences click here. For more ratings news on Roivant Sciences click here.

Shares of Roivant Sciences closed at $10.43 yesterday.

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