Immunovant falls after UBS says late-stage data for muscle disorder drug 'underwhelms'

Shares of drug developer Immunovant IMVT.O fall 3.8% to $18.08

Company says its drug, batoclimab, helped improve the ability to perform daily activities in some patients with a type of chronic autoimmune disease affecting muscles in a late-stage trial

The drug was tested for myasthenia gravis — a disease that affects the muscles used for eye movement, facial expressions, chewing, swallowing and speaking

UBS analysts, however, say the late-stage data "underwhelms high expectations" set by Argenx's ARGX.BR flagship drug Vyvgart

IMVT says batoclimab also met the goal of a mid-stage trial testing in patients with a type of neurological disorder called chronic inflammatory demyelinating polyneuropathy

Company says it does not plan to seek approval for the drug, batoclimab, for either of the two conditions but will focus on developing its other experimental drug IMVT-1402 for the same conditions

Up to last close, Immunovant shares have fallen ~38% in the past 12 months