Immunovant Announces $450 Million Private Placement

Rhea-AI Summary

Immunovant (Nasdaq: IMVT), a clinical-stage immunology company, announced a $450 million private placement. The company will sell 22,500,000 shares of common stock at $20.00 per share to three institutional accredited investors in a private investment in public equity (PIPE). The transaction is expected to close around January 15, 2025, subject to customary conditions.

The proceeds will be used to advance Immunovant's development pipeline, working capital, and other corporate purposes. Dr. Pete Salzmann, CEO of Immunovant, stated that the additional capital will support the development of their lead asset, IMVT-1402.

The shares sold in the PIPE are not registered under the Securities Act of 1933 and cannot be offered or sold in the U.S. without an exemption. However, Immunovant has agreed to register the resale of these shares with the SEC.

Positive

• Immunovant secures $450 million in gross proceeds through a private placement.
• The capital will be used to advance the development pipeline, including lead asset IMVT-1402.

Negative

• The shares issued in the PIPE are not registered under U.S. securities laws, potentially limiting liquidity.

Insights

Investment Banking Analyst

This $450 million PIPE financing represents a major capital injection for Immunovant, structured at $20.00 per share. The deal's pricing shows strong institutional confidence, coming at a minimal discount to market price. The participation of three sophisticated investors - including Roivant, a healthcare-focused fund and a large mutual fund complex - validates the company's pipeline potential.

The timing and size of this raise significantly bolsters Immunovant's balance sheet, providing runway to advance IMVT-1402 through multiple clinical milestones. With 22.5 million new shares being issued, this represents substantial dilution but the strategic benefits outweigh the dilutive impact given the company's development stage and capital needs.

The private placement structure allows for faster execution compared to a public offering, while the registration rights agreement ensures future liquidity for investors. This financing positions Immunovant competitively in the autoimmune therapeutic space, with enhanced financial flexibility to pursue its clinical programs.

Biotech Research Analyst

This substantial capital raise strengthens Immunovant's ability to advance IMVT-1402, their novel FcRn inhibitor targeting multiple autoimmune indications. The strong investor interest, particularly from specialized healthcare investors, suggests confidence in the drug's clinical potential and differentiated profile in the competitive FcRn landscape.

The $450 million provides important runway to potentially advance IMVT-1402 through multiple Phase 2 and possibly Phase 3 trials across different indications. For context, FcRn inhibitors represent a promising new therapeutic class, with recent approvals demonstrating both clinical and commercial potential in autoimmune diseases.

Think of FcRn inhibitors as a 'reset button' for the immune system - they work by reducing harmful antibodies while preserving beneficial ones. This financing ensures Immunovant can thoroughly explore IMVT-1402's potential across multiple autoimmune conditions, potentially positioning it as a best-in-class therapy in this emerging drug class.

NEW YORK, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Immunovant, Inc. (Nasdaq: IMVT), a clinical-stage immunology company dedicated to enabling normal lives for people with autoimmune diseases, today announced that it has agreed to sell an aggregate of 22,500,000 shares of common stock at a purchase price of $20.00 per share to three institutional accredited investors in a private investment in public equity (PIPE). Immunovant anticipates receiving aggregate gross proceeds of approximately $450 million from the PIPE. The PIPE is expected to close on or about January 15, 2025, subject to the satisfaction of customary closing conditions. Immunovant expects to use the proceeds from the PIPE for the advancement of its development pipeline, working capital and other general corporate purposes.

“We are excited to announce this significant financing from a U.S.-based healthcare focused investor, a large mutual fund complex, and Roivant,” said Dr. Pete Salzmann, Chief Executive Officer of Immunovant. “The additional capital will help us advance a broad development program for our lead asset IMVT-1402.”

The offer and sale of the shares of common stock to be sold in the PIPE are being made in a transaction not involving a public offering, and the shares have not been registered under the Securities Act of 1933, as amended (the Securities Act), or any applicable state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and such applicable state securities laws. Immunovant has agreed to register the resale of the shares of common stock to be issued in the PIPE with the Securities and Exchange Commission.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Immunovant, Inc.
Immunovant, Inc. is a clinical-stage immunology company dedicated to enabling normal lives for people with autoimmune diseases. As a trailblazer in anti-FcRn technology, the Company is developing innovative, targeted therapies to meet the complex and variable needs of people with autoimmune diseases. For additional information on Immunovant, please visit immunovant.com. 

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The use of words such as "can," “may,” “might,” “will,” “would,” “should,” “expect,” “believe,” “estimate,” “design,” “plan,” "intend," and other similar expressions are intended to identify forward-looking statements. Such forward looking statements include statements regarding the timing, size and completion of the PIPE and the anticipated use of proceeds from the PIPE. There are numerous risks and uncertainties that could cause actual results and Immunovant’s plans and objectives to differ materially from those expressed in the forward-looking information, such as those risks discussed in the section entitled “Risk Factors” set forth in Immunovant’s Quarterly Report on Form 10-Q filed with the SEC on November 7, 2024, and Immunovant’s subsequent filings with the SEC. Any forward-looking statement speaks only as of the date on which it was made. Immunovant undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact:
Renee Barnett, MBA
Chief Financial Officer
Immunovant, Inc.
info@immunovant.com

FAQ

What is the total amount raised by Immunovant in the private placement?

Immunovant raised $450 million in the private placement.

How many shares did Immunovant sell in the PIPE transaction?

Immunovant sold 22,500,000 shares of common stock in the PIPE transaction.

What is the purchase price per share in Immunovant's PIPE?

The purchase price per share in Immunovant's PIPE is $20.00.

When is the expected closing date for the PIPE transaction?

The PIPE transaction is expected to close on or about January 15, 2025.

What will Immunovant use the proceeds from the PIPE for?

Immunovant will use the proceeds to advance its development pipeline, working capital, and other corporate purposes.

Are the shares sold in Immunovant's PIPE registered under the Securities Act?

No, the shares sold in the PIPE are not registered under the Securities Act of 1933.

Will Immunovant register the resale of the shares issued in the PIPE?

Yes, Immunovant has agreed to register the resale of the shares with the SEC.