0001764013-26-000064
SEC filingImmunovant reported a net loss of $505.6 million for FY2026, driven by increased R&D spending and a $39 million batoclimab discontinuation charge, but ended the period with $902 million in cash to fund IMVT-1402 development.
Immunovant reported no revenue for the fiscal year ended March 31, 2026, as it remains a pre-commercial biotechnology company. Net loss for the year was $505.6 million, compared to $413.8 million in fiscal 2025, representing a 22% increase. The loss per share was $2.77, versus $2.73 in the prior period.
The increase in net loss was primarily driven by higher research and development expenses, which rose to $456.7 million from $360.9 million in fiscal 2025, an increase of $95.8 million (27%). This was largely attributable to the expansion of clinical programs for IMVT-1402 into six indications (GD, D2T RA, MG, CIDP, SjD, and CLE), increased personnel-related costs, and a $38.95 million charge for the discontinuation of batoclimab. Acquired in-process R&D expenses were nil in fiscal 2026 compared to $12.5 million in fiscal 2024 (no such expenses in fiscal 2025). General and administrative expenses decreased slightly to $76.2 million from $77.2 million, as cost reductions in IT and market research partially offset higher stock-based compensation.
Interest income, net, was $25.3 million, relatively flat year-over-year, benefiting from higher average cash balances despite slightly lower interest rates. Other income of $2.2 million favorably impacted pre-tax loss.
Total cash and cash equivalents ended at $902.1 million as of March 31, 2026, compared to $714.0 million at March 31, 2025. The increase was largely due to a $543.7 million net proceeds from an underwritten offering in December 2025, partially offset by $407.3 million of cash used in operations. The company has no debt and no off-balance-sheet financing. Accounts receivable decreased to $1.1 million, and prepaid expenses and other current assets fell to $42.8 million from $51.2 million. Liabilities rose to $104.4 million from $68.8 million, primarily due to an increase in accrued expenses related to the batoclimab discontinuation ($42.5 million) and higher accrued bonuses. The current ratio remains strong at 9.1x.
The balance sheet is well-capitalized to fund ongoing development through the anticipated commercial launch of IMVT-1402 in Graves' disease. Management states that existing cash should be sufficient for announced indications to date. No additional financing needs were identified in the near term, though the company has an at-the-market (ATM) facility for up to $150 million that remains untapped.
Cash used in operating activities was $407.3 million, compared to $375.9 million in fiscal 2025, reflecting the higher net loss. The primary non-cash charge was stock-based compensation of $55.7 million. Changes in working capital provided a net $42.1 million inflow, mainly from increased accrued expenses (including $39.0 million for batoclimab discontinuation). Capital expenditures were negligible at $8 thousand.
Free cash flow (operating cash flow minus capex) was negative $407.3 million, consistent with the company's clinical-stage status. Financing activities provided $595.8 million, driven by the equity offering and $52.1 million in stock option exercises. The cash burn rate is likely to increase as the six IMVT-1402 trials reach peak enrollment and manufacturing scales up. The company has no debt, no dividend obligations, and no share repurchase program, so all cash is directed to operations.
Management emphasized the strategic shift to IMVT-1402 after batoclimab's Phase 3 failure. The pipeline now focuses on six indications with registrational potential in GD, D2T RA, MG, CIDP, and SjD, plus a proof-of-concept in CLE. Key near-term catalysts include top-line results from the D2T RA trial (Period 2) and the CLE trial in H2 2026. The company believes its deep IgG reduction profile (~80% with 600mg weekly dosing) and favorable safety (no albumin/LDL changes) could offer best-in-class efficacy and convenience via an autoinjector.
Management also noted ongoing discussions with HanAll regarding batoclimab's disposition, which could result in arbitration. The company believes it has satisfied its obligations under the HanAll agreement, but a dispute could consume management time and resources.
No specific numerical revenue or expense guidance was provided, but management indicated that existing cash ($902M) funds operations through the potential commercial launch of IMVT-1402 in GD. The company also expects R&D costs to remain elevated as it continues to enroll and conduct multiple late-stage trials.
The company operates as a single segment, so no segment-level detail is provided. Stock-based compensation totaled $55.7 million (3.7% higher than fiscal 2025), allocated 54% to R&D and 46% to G&A. The effective tax rate was near zero due to a full valuation allowance against deferred tax assets. A notable item was the internal reorganization of IP in January 2026, which created a $138.5 million deferred tax benefit offset by a valuation allowance increase of similar magnitude. The net impact on tax expense was only $0.2 million in state taxes.
Accrued expenses tripled to $96.6 million, driven by the batoclimab discontinuation accrual. Operating lease assets and liabilities remain immaterial at $0.07 million. The company has no goodwill, no intangible assets, and no derivative liabilities.