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Dec 31, 2024

Roivant Sciences Q3 2025 Earnings Report

Roivant Sciences reported a decline in revenue and net income, with increased R&D spending and a strong cash position.

Key Takeaways

Roivant Sciences saw a revenue decline of 42% year-over-year, driven by lower collaboration revenue. The company reported a net income of $118.1 million, significantly lower than the previous year's $5.07 billion due to a one-time gain from the Telavant sale in the prior year. Operating expenses rose due to higher R&D investments, particularly in its anti-FcRn franchise. Despite the losses, Roivant maintains a strong liquidity position with $5.2 billion in cash and marketable securities.

Revenue declined by 42% year-over-year to $9.0 million.

Net income was $118.1 million, down from $5.07 billion YoY due to the prior year's one-time gain.

Operating loss widened to $274.4 million due to increased R&D expenses.

Roivant has a strong liquidity position with $5.2 billion in cash and marketable securities.

Total Revenue
$9.02M
Previous year: $37.1M
-75.7%
EPS
-$0.2
Previous year: -$0.21
-4.8%
R&D Expenses
$142M
Previous year: $124M
+14.5%
G&A Expenses
$142M
Previous year: $197M
-28.3%
Gross Profit
$6.95M
Previous year: $30.5M
-77.2%
Cash and Equivalents
$5.16B
Previous year: $6.69B
-22.9%
Total Assets
$5.79B
Previous year: $7.31B
-20.8%

Roivant Sciences

Roivant Sciences

Forward Guidance

Roivant plans to advance its immunology pipeline, with multiple key trial readouts in 2025. The company is focused on expanding IMVT-1402 into ten indications by 2026 and maintaining a strong financial position.

Positive Outlook

  • IMVT-1402 pivotal trials are progressing in Graves’ disease and rheumatoid arthritis.
  • Brepocitinib Phase 2 trial in cutaneous sarcoidosis set to begin in Q2 2025.
  • Batoclimab trial results for myasthenia gravis expected by March 2025.
  • Strong liquidity position with $5.2 billion in cash and securities.
  • Potential for additional indications and pipeline expansion in 2025-2026.

Challenges Ahead

  • Revenue decline of 42% year-over-year indicates weaker sales performance.
  • Continued operating losses driven by high R&D and G&A expenses.
  • No immediate near-term revenue growth catalysts highlighted.
  • Litigation against Moderna still ongoing, with trial set for September 2025.
  • Dependent on successful clinical trial outcomes for future growth.