QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| Not Applicable | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| | The |
| ☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | | |
Emerging growth company | |
Page
|
||
PART I—FINANCIAL INFORMATION
|
||
Item 1.
|
5
|
|
5
|
||
6
|
||
7
|
||
8
|
||
9 | ||
10
|
||
Item 2.
|
26
|
|
Item 3.
|
37
|
|
Item 4.
|
38
|
|
PART II—OTHER INFORMATION
|
||
Item 1.
|
39
|
|
Item 1A.
|
39 | |
Item 2.
|
99
|
|
Item 3.
|
100
|
|
Item 4.
|
100
|
|
Item 5.
|
100
|
|
Item 6.
|
101
|
|
102
|
• |
Our relatively limited operating history and the inherent uncertainties and risks involved in biopharmaceutical product development and commercialization may make it difficult for us to execute on our business model and for you to assess
our future prospects.
|
• |
We may not be successful in our efforts to acquire or in-license new product candidates, and newly acquired or in-licensed product candidates may not perform as expected in clinical trials or be successful in eventually achieving
marketing approvals.
|
• | Immunovant relies on the HanAll Agreement to provide the rights to the core intellectual property relating to IMVT-1402 and batoclimab. Any termination or loss of significant rights under the HanAll Agreement would adversely affect Immunovant’s development and commercialization of IMVT-1402 and batoclimab. |
• |
We will likely incur significant operating losses for the foreseeable future and may never achieve sustained profitability.
|
• |
We face risks associated with the allocation of capital and personnel across our businesses.
|
• |
We face risks associated with the Vant structure.
|
• |
We face risks associated with potential future payments related to our product candidates.
|
• |
We face risks associated with acquisitions, divestitures and other strategic transactions.
|
• |
We face risks associated with the use of our cash, cash equivalents and marketable securities.
|
• |
We are exposed to risks related to our significant holdings of cash, cash equivalents and marketable securities.
|
• |
While we do not have a need for additional capital under our current operating plans as a result of our current liquidity position, we may in the future require additional capital to fund our operations. In that case, if we fail to
obtain necessary financing when needed, we may not be able to successfully acquire or in-license new product candidates, complete the development and commercialization of our product candidates following regulatory approval and continue to
pursue our drug discovery efforts.
|
• |
Our business strategy and potential for future growth relies on a number of assumptions, some or all of which may not be realized.
|
• |
Our drug discovery efforts may not be successful in identifying new product candidates.
|
• |
Unfavorable, uncertain and rapidly changing global and regional economic, political and public health conditions could adversely affect our business, financial condition or results of operations.
|
• |
A portion of our or certain of our Vants’ manufacturing, laboratory research or clinical trial activities takes place in Asia. A significant disruption in that region, such as a trade war or political unrest, could materially adversely
affect our business, financial condition and results of operations.
|
• |
Inadequate funding for the FDA, U.S. Patent and Trademark Office (“USPTO”), SEC or other government agencies could hinder, delay or result in the suspension of those agencies’ operations, which could harm our business.
|
• |
Clinical trials and preclinical studies are very expensive, time-consuming, difficult to design and implement and involve uncertain outcomes. We may encounter substantial delays in clinical trials, or may not be able to conduct or
complete clinical trials or preclinical studies on the expected timelines, if at all.
|
• |
We may encounter difficulties enrolling and retaining patients in clinical trials, and clinical development activities could thereby be delayed or otherwise adversely affected.
|
• |
The results of our preclinical studies and clinical trials may not support our proposed claims for our product candidates or regulatory approvals on a timely basis or at all, and the results of earlier studies and trials may not be
predictive of future trial results.
|
• |
Interim, preliminary or top-line data from our clinical trials that we announce or publish from time to time may change as more patient data become available and are subject to audit and verification procedures that could result in
material changes in the final data.
|
• |
Changes in methods of product manufacturing or formulation may result in additional costs or delays.
|
• |
Obtaining approval of a new drug is an extensive, lengthy, expensive and inherently uncertain process, and the FDA or another regulatory authority may delay, limit or deny approval. We cannot give any assurance that any of our product
candidates will receive regulatory approval, which is necessary before they can be commercialized. If we are unable to obtain regulatory approval in one or more jurisdictions for any product candidate, our business will be substantially
harmed.
|
• |
Our clinical trials may fail to demonstrate substantial evidence of the safety and efficacy of product candidates that we may identify and pursue for their intended uses, which would prevent, delay or limit the scope of regulatory
approval and commercialization.
|
• |
Our product candidates may cause undesirable side effects or have other properties that could halt their clinical development, delay or prevent their regulatory approval, limit the scope of any approved label or market acceptance
following regulatory approval or result in significant negative consequences.
|
• |
The regulatory approval processes of the FDA and comparable non-U.S. regulatory authorities are lengthy, time consuming and inherently unpredictable, and gaining approval for a product candidate in one country or jurisdiction does not
guarantee that we will be able to obtain approval for or commercialize it in any other jurisdiction, which would limit our ability to realize our full market potential.
|
• |
We rely on third parties to conduct, supervise and monitor our clinical trials, and if those third parties perform in an unsatisfactory manner or fail to comply with applicable requirements, it may harm our business.
|
• |
We do not have our own manufacturing capabilities and rely on third parties to produce clinical and commercial supplies of our product candidates.
|
• |
We are highly dependent on our key personnel, and if we are not successful in attracting, motivating and retaining highly qualified personnel, we may not be able to successfully implement our business strategy.
|
• |
The use of artificial intelligence (“AI”) could expose us to liability or adversely affect our business.
|
• |
If we are unable to obtain and maintain patent and other intellectual property protection for our technology and product candidates, or if the scope of the intellectual property protection obtained is not sufficiently broad, we may not
be able to compete effectively in our markets.
|
• |
If the patent applications we own or have in-licensed with respect to our product candidates fail to issue, if their validity, patentability, enforceability, breadth or strength of protection is threatened, or if they fail to provide
meaningful exclusivity for our product candidates, it could dissuade companies from collaborating with us to develop product candidates, and threaten our ability to commercialize our product candidates following regulatory approval. Any
such outcome could have a materially adverse effect on our business.
|
• |
The length of our patent terms may be inadequate to protect the competitive position of our product candidates for an adequate amount of time.
|
• |
If our performance does not meet market expectations, the price of our securities may decline.
|
• |
We have incurred and will continue to incur increased costs as a result of operating as a public company and our management has devoted and will continue to devote a substantial amount of time to new compliance initiatives.
|
• |
If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired, investors may lose confidence in our financial reporting and the
trading price of our common shares may decline.
|
• |
Anti-takeover provisions in our memorandum of association and bye-laws, as well as provisions of Bermuda law, could delay or prevent a change in control, limit the price investors may be willing to pay in the future for our common shares
and could entrench management.
|
• |
Our largest shareholders own a significant percentage of our common shares and are able to exert significant control over matters subject to shareholder approval.
|
• |
Future sales and issuances of our or the Vants’ equity securities or rights to purchase equity securities, including pursuant to our or the Vants’ equity incentive and other compensatory plans, will result in additional dilution of the
percentage ownership of our shareholders and could cause our share price to fall.
|
• |
Future sales, or the perception of future sales, of our common shares by us or our existing shareholders could cause the market price for our common shares to decline and impact our ability to raise capital in the future.
|
• |
our relatively limited operating history and the inherent uncertainties and risks involved in biopharmaceutical product development and commercialization;
|
• |
our ability to acquire or in-license new product candidates;
|
• |
the allocation of capital and personnel across our businesses;
|
• |
our Vant structure;
|
• |
potential future payments we may owe in connection wth our product candidates;
|
• |
acquisitions, divestitures and other strategic transactions;
|
• |
the use of our cash, cash equivalents and marketable securities;
|
• |
the potential future need for additional capital to fund our operations;
|
• |
clinical trials and preclinical studies, which are very expensive, time-consuming, difficult to design and implement and involve uncertain outcomes;
|
• |
unfavorable, uncertain and rapidly changing global and regional economic, political and public health conditions;
|
• |
the fact that designing and implement clinical trials and preclinical studies is very expensive, time-consuming and difficult;
|
• |
difficulties we may encounter enrolling and retaining patients in clinical trials, which could adversely affect or otherwise delay clinical development activities;
|
• |
the results of our preclinical studies and clinical trials not supporting our proposed claims for a product candidate or regulatory approval;
|
• |
interim, preliminary or top-line data from our clinical trials changing as more data become available or data being delayed due to audit or verification procedures;
|
• |
changes in product candidate manufacturing or formulation that could result in additional costs or delays;
|
• |
the fact that obtaining approval of a new drug is an extensive, lengthy, expensive and inherently uncertain process and the FDA or another regulatory authority may delay, limit or deny approval;
|
• |
the failure of our clinical trials to demonstrate substantial evidence of the safety and efficacy of our product candidates;
|
• |
undesirable side effects caused by our product candidates that halt their clinical development, delay or prevent their regulatory approval, limit the scope of any approved label or market acceptance or result in negative
consequences;
|
• |
our inability to obtain regulatory approval for a product candidate in certain jurisdictions, even if we are able to obtain approval in certain other jurisdictions;
|
• |
the failure of any third-party we rely upon to conduct, supervise and monitor our clinical trials to perform in a satisfactory manner or to comply with applicable legal, regulatory or other requirements;
|
• |
our reliance on third parties to produce clinical and commercial supplies of our product candidates;
|
• |
our dependence on key personnel and our ability to attract, motivate and retain highly qualified personnel;
|
• |
the potential that our use of AI could expose us to liability;
|
• |
our ability to obtain and maintain patent and other intellectual property protection for our technology and product candidates;
|
• |
the failure to issue (or the threatening of their validity, patentability, enforceability, breadth or strength of protection) or provide meaningful exclusivity for our product candidates of our patent applications that we own or have
in-licensed;
|
• |
the inadequacy of patent terms and their scope to protect our competitive position;
|
• |
the fact that our largest shareholders own a significant percentage of our stock and will be able to exert significant control over matters subject to shareholder approval;
|
• |
dilution of ownership caused by future sales and issuances of our or the Vants’ equity securities or rights to purchase equity securities;
|
• |
future sales, or the perception of future sales, of our common shares by us or our existing shareholders, and the impact thereof on the price of our common shares;
|
• |
the outcome of any pending or potential litigation, including but not limited to our expectations regarding the outcome of any such litigation and costs and expenses associated with such litigation;
|
• |
changes in applicable laws or regulations;
|
• |
the possibility that we may be adversely affected by other economic, business or competitive factors; and
|
• |
any other risks and uncertainties, including those described under Part II, Item IA. “Risk Factors.”
|
Item 1. |
Financial Statements (Unaudited).
|
June 30, 2025
|
March 31, 2025
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Marketable securities (includes $ |
|
|
||||||
Other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Property and equipment, net
|
|
|
||||||
Operating lease right-of-use assets
|
|
|
||||||
Investments measured at fair value
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
|
$
|
|
||||
Accrued expenses
|
|
|
||||||
Operating lease liabilities
|
|
|
||||||
Other current liabilities
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Liability instruments measured at fair value
|
|
|
||||||
Operating lease liabilities, noncurrent
|
|
|
||||||
Other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Commitments and contingencies (Note 11)
|
||||||||
Shareholders’ equity:
|
||||||||
Common shares, par value $ |
|
|
||||||
Additional paid-in capital
|
|
|
||||||
(Accumulated deficit) / retained earnings
|
( |
)
|
|
|||||
Accumulated other comprehensive income
|
|
|
||||||
Shareholders’ equity attributable to Roivant Sciences Ltd.
|
|
|
||||||
Noncontrolling interests
|
|
|
||||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Three Months Ended June 30,
|
||||||||
2025
|
2024
|
|||||||
Revenue
|
$
|
|
$
|
|
||||
Operating expenses:
|
||||||||
Cost of revenues
|
|
|
||||||
Research and development (includes $ |
|
|
||||||
General and administrative (includes $ |
|
|
||||||
Total operating expenses
|
|
|
||||||
Gain on sale of Telavant net assets
|
|
|
||||||
Loss from operations
|
( |
)
|
( |
)
|
||||
Change in fair value of investments
|
|
( |
)
|
|||||
Change in fair value of liability instruments
|
|
|
||||||
Interest income
|
( |
)
|
( |
)
|
||||
Other expense, net
|
|
|
||||||
Loss from continuing operations before income taxes
|
( |
)
|
( |
)
|
||||
Income tax expense
|
|
|
||||||
Loss from continuing operations, net of tax
|
( |
)
|
( |
)
|
||||
Income from discontinued operations, net of tax
|
|
|
||||||
Net (loss) income
|
( |
)
|
|
|||||
Net loss attributable to noncontrolling interests
|
( |
)
|
( |
)
|
||||
Net (loss) income attributable to Roivant Sciences Ltd.
|
$
|
( |
)
|
$
|
|
|||
Amounts attributable to Roivant Sciences Ltd.:
|
||||||||
(Loss) income from continuing operations, net of tax
|
$
|
( |
)
|
$
|
|
|||
Income from discontinued operations, net of tax
|
|
|
||||||
Net (loss) income attributable to Roivant Sciences Ltd.
|
$
|
( |
)
|
$
|
|
|||
Net (loss) income per common share, basic:
|
||||||||
(Loss) income from continuing operations, net of tax
|
$
|
( |
)
|
$
|
|
|||
Income from discontinued operations, net of tax
|
$
|
|
$
|
|
||||
Net (loss) income per common share
|
$
|
( |
)
|
$
|
|
|||
Net (loss) income per common share, diluted:
|
||||||||
(Loss) income from continuing operations, net of tax
|
$
|
( |
)
|
$
|
|
|||
Income from discontinued operations, net of tax
|
$
|
|
$
|
|
||||
Net (loss) income per common share
|
$
|
( |
)
|
$
|
|
|||
Weighted average shares outstanding:
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
Three Months Ended June 30,
|
||||||||
2025
|
2024
|
|||||||
Net (loss) income
|
$
|
( |
)
|
$
|
|
|||
Other comprehensive income (loss):
|
||||||||
Change in fair value of debt due to change in subsidiary credit risk
|
|
( |
)
|
|||||
Unrealized gains on available-for-sale securities
|
|
|
||||||
Foreign currency translation adjustment
|
|
( |
)
|
|||||
Total other comprehensive income (loss)
|
|
( |
)
|
|||||
Comprehensive (loss) income
|
( |
)
|
|
|||||
Comprehensive loss attributable to noncontrolling interests
|
( |
)
|
( |
)
|
||||
Comprehensive (loss) income attributable to Roivant Sciences Ltd.
|
$
|
( |
)
|
$
|
|
Shareholders’ Equity
|
||||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive
Income
|
Retained
Earnings /
(Accumulated
Deficit)
|
Noncontrolling
Interests
|
Total
Shareholders’
Equity
|
|||||||||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||||||||||
Balance at March 31, 2025
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Issuance of the Company’s common shares in connection with equity incentive plans, net of forfeitures, and tax withholding payments
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Exercise and vesting of subsidiary share awards
|
—
|
|
|
|
|
|
|
|||||||||||||||||||||
Cash contributions to majority-owned subsidiaries
|
—
|
|
( |
)
|
|
|
|
|
||||||||||||||||||||
Unrealized gains on available-for-sale securities
|
—
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of the Company’s common shares
|
( |
)
|
|
|
|
( |
)
|
|
( |
)
|
||||||||||||||||||
Share-based compensation
|
—
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
—
|
|
|
|
|
|
|
|||||||||||||||||||||
Net loss
|
—
|
|
|
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||||||||
Balance at June 30, 2025
|
|
$
|
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
$
|
|
Shareholders’ Equity
|
||||||||||||||||||||||||||||
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive
Loss
|
Retained
Earnings
|
Noncontrolling
Interests
|
Total
Shareholders’
Equity
|
|||||||||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||||||||||
Balance at March 31, 2024
|
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Issuance of the Company’s common shares in connection with equity incentive plans and tax withholding payments
|
|
|
( |
)
|
|
|
|
( |
)
|
|||||||||||||||||||
Issuance of subsidiary common shares, net
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Exercise and vesting of subsidiary share awards
|
—
|
|
|
|
|
|
|
|||||||||||||||||||||
Cash contributions to majority-owned subsidiaries
|
—
|
|
( |
)
|
|
|
|
|
||||||||||||||||||||
Repurchase of common shares
|
( |
)
|
|
( |
)
|
|
|
|
( |
)
|
||||||||||||||||||
Share-based compensation
|
—
|
|
|
|
|
|
|
|||||||||||||||||||||
Change in fair value of debt due to change in subsidiary credit risk
|
—
|
|
|
( |
)
|
|
|
( |
)
|
|||||||||||||||||||
Foreign currency translation adjustment
|
—
|
|
|
( |
)
|
|
|
( |
)
|
|||||||||||||||||||
Net income (loss)
|
—
|
|
|
|
|
( |
)
|
|
||||||||||||||||||||
Balance at June 30, 2024
|
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
Three Months Ended June 30,
|
||||||||
2025
|
2024
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss (income)
|
$
|
( |
)
|
$
|
|
|||
Adjustments to reconcile net loss (income) to net cash used in operating activities:
|
||||||||
Share-based compensation
|
|
|
||||||
Change in fair value of investments
|
|
( |
)
|
|||||
Change in fair value of debt and liability instruments
|
|
( |
)
|
|||||
Gain on sale of Telavant net assets
|
|
( |
)
|
|||||
Accretion of discount and amortization of premium on marketable securities, net
|
( |
)
|
|
|||||
Depreciation and amortization
|
|
|
||||||
Non-cash lease expense
|
|
|
||||||
Other
|
|
|
||||||
Changes in assets and liabilities, net of effects from acquisition and divestiture:
|
||||||||
Other current assets
|
|
( |
)
|
|||||
Accounts payable
|
( |
)
|
( |
)
|
||||
Accrued expenses
|
( |
)
|
( |
)
|
||||
Operating lease liabilities
|
( |
)
|
( |
)
|
||||
Other
|
( |
)
|
|
|||||
Net cash used in operating activities
|
( |
)
|
( |
)
|
||||
Cash flows from investing activities:
|
||||||||
Purchases of marketable securities
|
( |
)
|
|
|||||
Maturities of marketable securities
|
|
|
||||||
Purchase of property and equipment
|
( |
)
|
( |
)
|
||||
Net cash used in investing activities
|
( |
)
|
( |
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayment of debt by subsidiary
|
|
( |
)
|
|||||
Payments on principal portion of finance lease obligations
|
|
( |
)
|
|||||
Proceeds from exercise of the Company’s and subsidiary stock options
|
|
|
||||||
Taxes paid related to net settlement of equity awards
|
( |
)
|
( |
)
|
||||
Repurchase of common shares
|
( |
)
|
( |
)
|
||||
Net cash used in financing activities
|
( |
)
|
( |
)
|
||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
|
( |
)
|
|||||
Net change in cash, cash equivalents and restricted cash
|
( |
)
|
( |
)
|
||||
Cash, cash equivalents and restricted cash at beginning of period
|
|
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
|
$
|
|
||||
Non-cash investing and financing activities:
|
||||||||
Issuance of subsidiary shares in connection with Debt Renegotiation
|
$
|
|
$
|
|
||||
Other
|
$
|
|
$
|
|
June 30, 2025
|
March 31, 2025
|
|||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Restricted cash (included in “Other current assets”)
|
|
|
||||||
Restricted cash (included in “Other assets”)
|
|
|
||||||
Cash, cash equivalents and restricted cash
|
$
|
|
$
|
|
• |
Level 1-Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.
|
• |
Level 2-Valuations are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs
are observable, either directly or indirectly.
|
• |
Level 3-Valuations are based on inputs that are unobservable (supported by little or no market activity) and significant to the overall fair value measurement.
|
June 30, 2025
|
March 31, 2025
|
|||||||
Cash and cash equivalents
|
||||||||
Cash
|
$
|
|
$
|
|
||||
Money market funds
|
|
|
||||||
Total cash and cash equivalents
|
$
|
|
$
|
|
||||
Marketable securities
|
||||||||
U.S. Treasury securities, available-for-sale
|
$
|
|
$
|
|
||||
U.S. Treasury securities, held-to-maturity
|
|
|
||||||
Total marketable securities
|
$
|
|
$
|
|
||||
Total cash, cash equivalents, and marketable securities
|
$
|
|
$
|
|
As of June 30, 2025
|
||||||||||||||||
Amortized Cost
|
Gross Unrealized
Gains
|
Gross Unrealized
Losses
|
Fair Value
|
|||||||||||||
U.S. Treasury securities, available-for-sale
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
|||||||
U.S. Treasury securities, held-to-maturity
|
|
|
( |
)
|
|
|||||||||||
Total marketable securities
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
|
June 30, 2024
|
||||
Product revenue, net
|
$
|
|
||
License, milestone and other revenue
|
|
|||
Revenue, net
|
|
|||
Operating expenses:
|
||||
Cost of revenues
|
|
|||
Research and development
|
|
|||
Selling, general and administrative
|
|
|||
Total operating expenses
|
|
|||
Loss from operations
|
( |
)
|
||
Change in fair value of debt
|
( |
)
|
||
Interest expense(1)
|
|
|||
Other income, net
|
( |
)
|
||
Income from discontinued operations before income taxes
|
|
|||
Income tax expense
|
|
|||
Income from discontinued operations, net of tax
|
$
|
|
||
Loss from discontinued operations before income taxes attributable to noncontrolling interests
|
$
|
( |
)
|
|
Income from discontinued operations before income taxes attributable to Roivant Sciences Ltd.
|
|
|||
Income from discontinued operations before income taxes
|
$
|
|
June 30, 2024
|
||||
Share-based compensation
|
$
|
|
||
Change in fair value of debt
|
$
|
( |
)
|
|
Depreciation and amortization
|
$
|
|
June 30, 2025
|
March 31, 2025
|
|||||||
Research and development expenses
|
$
|
|
$
|
|
||||
Compensation-related expenses
|
|
|
||||||
Other expenses
|
|
|
||||||
Total accrued expenses
|
$
|
|
$
|
|
Number of Options
|
||||
Options outstanding at March 31, 2025
|
|
|||
Granted
|
|
|||
Exercised
|
( |
)
|
||
Forfeited/Canceled
|
( |
)
|
||
Options outstanding at June 30, 2025
|
|
|||
Options exercisable at June 30, 2025
|
|
Number of RSUs
|
||||
Non-vested balance at March 31, 2025
|
|
|||
Granted
|
|
|||
Vested
|
( |
)
|
||
Forfeited
|
( |
)
|
||
Non-vested balance at June 30, 2025
|
|
Number of CVARs
|
||||
Non-vested balance at March 31, 2025
|
|
|||
Vested
|
( |
)
|
||
Forfeited
|
( |
)
|
||
Non-vested balance at June 30, 2025
|
|
Executive
|
Title
|
Cash Awards
(in thousands)
|
||||
Matthew Gline
|
Chief Executive Officer
|
$
|
|
|||
Mayukh Sukhatme
|
President and Chief Investment Officer
|
$
|
|
|||
Eric Venker
|
President and Immunovant CEO
|
$
|
|
a. | |
b. | |
c. |
The remaining number of common shares issued to the MAAC Sponsor and each of MAAC’s independent directors are not subject to the vesting conditions described above.
|
As of June 30, 2025
|
As of March 31, 2025
|
|||||||||||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Balance as of June 30, 2025
|
Level 1
|
Level 2
|
Level 3
|
Balance as
of March 31,
2025
|
|||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||
Money market funds
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Available-for-sale marketable securities
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Investment in Datavant Class A units
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Investment in Arbutus common shares
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total assets at fair value
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||||||||||
Liability instruments measured at fair value(1)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total liabilities at fair value
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Balance at March 31, 2024
|
$
|
|
||
Changes in fair value of investment in Datavant, included in net income
|
)
|
|||
Balance at June 30, 2024
|
$
|
|
||
Balance at March 31, 2025
|
$
|
|
||
Changes in fair value of investment in Datavant, included in net loss
|
)
|
|||
Balance at June 30, 2025
|
$
|
|
Balance at March 31, 2024
|
$
|
|
||
Changes in fair value of liability instruments, included in net income
|
||||
Balance at June 30, 2024
|
$
|
|
||
Balance at March 31, 2025
|
$
|
|
||
Changes in fair value of liability instruments, included in net loss
|
||||
Balance at June 30, 2025
|
$
|
|
Point Estimate Used
|
||||||||
Input
|
As of June 30, 2025
|
As of March 31, 2025
|
||||||
Volatility
|
|
|
||||||
Discount rate
|
|
|
Point Estimate Used
|
||||||||
Input
|
As of June 30, 2025
|
As of March 31, 2025
|
||||||
Volatility
|
|
|
||||||
Risk-free rate
|
|
|
June 30, 2025
|
June 30, 2024
|
|||||||
Stock options and performance stock options
|
|
|
||||||
Restricted stock units and performance stock units (non-vested)
|
|
|
||||||
March 2020 CVARs(1)
|
|
|
||||||
November 2021 CVARs (non-vested)
|
|
|
||||||
Restricted common stock (non-vested)
|
|
|
||||||
Earn-Out Shares (non-vested)
|
|
|
||||||
Other stock based awards and instruments issued
|
|
|
Three Months Ended June 30,
|
||||||||
2025
|
2024
|
|||||||
Revenue
|
$
|
|
$
|
|
||||
Less:
|
||||||||
Cost of revenues
|
|
|
||||||
Program-specific research and development expenses:
|
||||||||
Anti-FcRn franchise—neurological diseases
|
|
|
||||||
Anti-FcRn franchise—endocrine diseases
|
|
|
||||||
Anti-FcRn franchise—rheumatology diseases
|
|
|
||||||
Anti-FcRn franchise—dermatology diseases
|
|
|
||||||
Anti-FcRn franchise—other clinical and nonclinical
|
|
|
||||||
Brepocitinib
|
|
|
||||||
Mosliciguat
|
|
|
||||||
Other development and discovery programs
|
|
|
||||||
Research and development share-based compensation
|
|
|
||||||
Research and development personnel-related expenses
|
|
|
||||||
Other research and development expenses
|
|
|
||||||
General and administrative share-based compensation
|
|
|
||||||
General and administrative personnel-related expenses
|
|
|
||||||
Other general and administrative expenses
|
|
|
||||||
Gain on sale of Telavant net assets
|
|
( |
)
|
|||||
Change in fair value of investments
|
|
( |
)
|
|||||
Change in fair value of liability instruments
|
|
|
||||||
Interest income
|
( |
)
|
( |
)
|
||||
Other expense, net
|
|
|
||||||
Income tax expense
|
|
|
||||||
Income from discontinued operations, net of tax
|
|
( |
)
|
|||||
Net (loss) income
|
$
|
( |
)
|
$
|
|
Executive
|
Title
|
Performance Restricted
Stock Units
(at max) (#)
|
Restricted
Stock Units
(#)
|
Cash Awards
($ in
thousands)
|
||||||||||
Frank Torti
|
RSI President and Vant Chair
|
|
|
$
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Product Candidate
|
Indication
|
Vant
|
Modality
|
Phase
|
||||
Brepocitinib
|
Dermatomyositis
|
Priovant
|
Small Molecule
|
Phase 3*
|
||||
Brepocitinib
|
Non-Infectious Uveitis
|
Priovant
|
Small Molecule
|
Phase 3*
|
||||
Brepocitinib
|
Cutaneous Sarcoidosis
|
Priovant
|
Small Molecule
|
Phase 2
|
||||
IMVT-1402
|
Graves’ Disease
|
Immunovant
|
Biologic
|
Phase 2/3*
|
||||
IMVT-1402
|
Difficult-to-Treat
Rheumatoid Arthritis
|
Immunovant
|
Biologic
|
Phase 2/3*
|
||||
IMVT-1402
|
Myasthenia Gravis
|
Immunovant
|
Biologic
|
Phase 2/3*
|
||||
IMVT-1402
|
Sjögren’s Disease
|
Immunovant
|
Biologic
|
Phase 2/3*
|
||||
IMVT-1402
|
Chronic Inflammatory Demyelinating Polyneuropathy
|
Immunovant
|
Biologic
|
Phase 2/3*
|
||||
IMVT-1402
|
Cutaneous Lupus Erythematosus
|
Immunovant
|
Biologic
|
Phase 2
|
||||
Batoclimab
|
Thyroid Eye Disease
|
Immunovant
|
Biologic
|
Phase 3*
|
||||
Mosliciguat
|
Pulmonary Hypertension associated with Interstitial Lung Disease
|
Pulmovant
|
Inhaled
|
Phase 2
|
|
Roivant Ownership
|
||||||||
Vant / Milestones & Royalties
|
Basic1
|
Fully Diluted2
|
|||||||
Priovant
|
74
|
%
|
65
|
%
|
|||||
Immunovant
|
57
|
%3
|
51
|
%3
|
|||||
Pulmovant
|
99
|
%
|
92
|
%
|
|||||
Genevant
|
83
|
%
|
64
|
%
|
|||||
Covant
|
97
|
%
|
90
|
%
|
|||||
Psivant
|
36
|
%
|
33
|
%
|
|||||
Arbutus
|
20
|
%3
|
19
|
%3
|
|||||
Lokavant
|
57
|
%
|
51
|
%
|
|||||
VantAI
|
60
|
%
|
49
|
%
|
|||||
Datavant
|
†
|
†
|
|||||||
VTAMA Milestones & Royalties4
|
86
|
%
|
4
|
81
|
%4
|
1. |
Basic ownership refers to Roivant’s percentage ownership of the issued and outstanding common and preferred shares (if applicable) of the entity.
|
2. |
Fully diluted ownership refers to Roivant’s percentage ownership of all outstanding equity interests of the entity, including unvested RSUs, options and warrants, in each case whether vested or unvested.
|
3. |
Denotes entities that are publicly traded.
|
4. |
Amounts shown as of the closing of the Dermavant Transaction on October 28, 2024. At closing of the Dermavant Transaction, we received cash consideration of $183.6 million. In January 2025, we received an
additional cash payment of $75.0 million upon FDA approval of VTAMA for the treatment of atopic dermatitis (the “AD Approval Milestone”). In addition to the foregoing, at closing, all former Dermavant equity holders, including Roivant,
received the right to receive their pro rata portion of (i) milestone payments of up to $950 million for the achievements of certain tiered net sales amounts with respect to VTAMA, each less than or equal to $1 billion and (ii) tiered
royalties of (x) low-to-mid single digit percentages with respect to annual net sales of VTAMA up to $1 billion and (y) 30% with respect to annual net sales of VTAMA above $1 billion. Roivant’s ownership interest in these potential
future milestones and royalties consists of (i) 100% of the first $270 million in upfront, milestone and royalty payments (inclusive of the upfront payment made at closing and the AD Approval Milestone) and (ii) between 86% and 81% of
subsequent milestone and royalty payments. For more information on the Dermavant Transaction, please refer to Note 6, “Discontinued Operations” to Roivant’s condensed consolidated financial statements included in this Quarterly Report
on Form 10-Q.
|
† |
As of June 30, 2025, the Company’s minority equity interest in Datavant represented approximately 9% of the outstanding Class A units. Datavant’s capital structure includes several classes of preferred
units that, among other features, have liquidation preferences and conversion features. Upon conversion of such preferred units into Class A units, the Company’s ownership interest would be diluted. For more information on Roivant’s
ownership interest in Datavant, please refer to Note 4, “Equity Method Investments” to Roivant’s unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
|
Program
|
Vant
|
Catalyst
|
Expected
Timing
|
Roivant pipeline growth
|
Roivant
|
New mid/late-stage in-licensing announcements
|
Ongoing
|
LNP platform
|
Genevant
|
Summary judgement phase in U.S. Moderna case
|
Ongoing
|
Batoclimab
|
Immunovant
|
Additional data in Graves’ disease including 6-month remission data
|
September 2025
|
Brepocitinib
|
Priovant
|
Topline data from Phase 3 trial in dermatomyositis
|
2H 2025
|
Batoclimab
|
Immunovant
|
Topline data from Phase 3 trials in thyroid eye disease
|
2H 2025
|
LNP platform
|
Genevant
|
Markman hearing decision in Pfizer/BioNTech case
|
2025*
|
LNP platform
|
Genevant
|
Jury trial in U.S. Moderna case
|
1Q 2026
|
Mosliciguat
|
Pulmovant
|
Topline data from Phase 2 trial in pulmonary hypertension associated with interstitial lung disease
|
2H 2026
|
Brepocitinib
|
Priovant
|
Topline data from Phase 2 trial in cutaneous sarcoidosis
|
2H 2026
|
IMVT-1402
|
Immunovant
|
Initial results from open label period 1 of potentially registrational trial in ACPA+ difficult-to-treat rheumatoid arthritis
|
2026
|
IMVT-1402
|
Immunovant
|
Topline data from Phase 2 trial in cutaneous lupus erythematosus
|
2026
|
Brepocitinib
|
Priovant
|
Topline data from Phase 3 trials in non-infectious uveitis
|
1H 2027
|
IMVT-1402
|
Immunovant
|
Topline data from potentially registrational trial in ACPA+ difficult-to-treat rheumatoid arthritis
|
2027
|
IMVT-1402
|
Immunovant
|
Topline data from potentially registrational trials in Graves’ disease
|
2027
|
IMVT-1402
|
Immunovant
|
Topline data from potentially registrational trial in myasthenia gravis
|
2027
|
IMVT-1402
|
Immunovant
|
Topline data from potentially registrational trial in Sjögren’s disease
|
2028
|
IMVT-1402
|
Immunovant
|
Topline data from potentially registrational trial in chronic inflammatory demyelinating polyneuropathy
|
2028
|
* |
The court in the Pfizer/BioNTech case has not provided guidance for the timing of its ruling for the Markman hearing, which could potentially be in 2025.
|
• |
Priovant: Phase 3 VALOR study for brepocitinib evaluating its use in patients with DM remains on track for topline data readout in the second half of calendar year 2025, with last patient
last visit completed in July. Roivant and Priovant hosted an investor event on brepocitinib in June and shared details about the ongoing VALOR DM study, including pooled/blinded baseline data, clinical endpoints details and successful steroid tapering data. Phase 3 trial for brepocitinib in non-infectious uveitis (NIU) is actively enrolling and on track for topline readout in the first half of calendar year 2027. Proof-of-concept trial for
brepocitinib in cutaneous sarcoidosis (CS) is actively enrolling and on track for topline readout in the second half of calendar year 2026.
|
• |
Immunovant: In
June 2025, Immunovant initiated a second potentially registrational trial evaluating IMVT-1402 in GD and a potentially registrational trial evaluating IMVT-1402 in SjD. All clinical development timelines remain on track for
IMVT-1402 across six announced indications, including potentially registrational trials in Graves’ disease (GD), difficult-to-treat rheumatoid arthritis (D2T RA), myasthenia gravis (MG), chronic inflammatory demyelinating
polyneuropathy (CIDP) and Sjögren’s disease (SjD), and a proof-of-concept trial in cutaneous lupus erythematosus (CLE).
|
• |
Roivant: Roivant reported consolidated cash,
cash equivalents, restricted cash and marketable securities of $4.5 billion at June 30, 2025, supporting cash runway into profitability. Roivant completed its $1.5 billion share repurchase program, including $208 million in
repurchases this quarter, reducing outstanding shares by over 15% from March 31, 2024. A new $500 million share repurchase program was approved by the board of directors in June 2025.
|
• |
Program-specific costs, including direct third-party costs, which include expenses incurred under agreements with contract research organizations (“CROs”) and contract manufacturing organizations (“CMOs”), manufacturing costs in
connection with producing materials for use in conducting nonclinical and clinical studies, the cost of consultants who assist with the development of our product candidates on a program-specific basis, investigator grants, sponsored
research and any other third-party expenses directly attributable to the development of our product candidates.
|
• |
Unallocated internal costs, including:
|
o |
employee-related expenses, such as salaries, share-based compensation and benefits, for research and development personnel; and
|
o |
other research and development related expenses that are not allocated to a specific program.
|
• |
the scope, rate of progress, expense and results of our preclinical development activities, any future clinical trials of our product candidates and other research and development activities that we may conduct;
|
• |
the number and scope of preclinical and clinical programs we decide to pursue;
|
• |
the uncertainties in clinical trial design and patient enrollment or drop out or discontinuation rates;
|
• |
the number of doses that patients receive;
|
• |
the countries in which the trials are conducted;
|
• |
our ability to secure and leverage adequate CRO support for the conduct of clinical trials;
|
•
|
our ability to establish an appropriate safety and efficacy profile for our product candidates;
|
•
|
the timing, receipt and terms of any approvals from applicable regulatory authorities;
|
•
|
the potential additional safety monitoring or other studies requested by regulatory agencies;
|
•
|
the significant and changing government regulation and regulatory guidance;
|
•
|
our ability to establish clinical and commercial manufacturing capabilities, or make arrangements with third-party manufacturers in order to ensure that we or our third-party manufacturers are able to make product successfully; and
|
•
|
our ability to maintain a continued acceptable safety profile of our product candidates following regulatory approval of our product candidates.
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
Revenue
|
$
|
2,170
|
$
|
7,990
|
$
|
(5,820
|
)
|
|||||
Operating expenses:
|
||||||||||||
Cost of revenues
|
154
|
213
|
(59
|
)
|
||||||||
Research and development
|
152,919
|
120,507
|
32,412
|
|||||||||
General and administrative
|
134,019
|
99,892
|
34,127
|
|||||||||
Total operating expenses
|
287,092
|
220,612
|
66,480
|
|||||||||
Gain on sale of Telavant net assets
|
—
|
110,387
|
(110,387
|
)
|
||||||||
Loss from operations
|
(284,922
|
)
|
(102,235
|
)
|
(182,687
|
)
|
||||||
Change in fair value of investments
|
19,125
|
(15,226
|
)
|
34,351
|
||||||||
Change in fair value of liability instruments
|
2,329
|
1,150
|
1,179
|
|||||||||
Interest income
|
(48,322
|
)
|
(72,127
|
)
|
23,805
|
|||||||
Other expense, net
|
11,208
|
3,608
|
7,600
|
|||||||||
Loss from continuing operations before income taxes
|
(269,262
|
)
|
(19,640
|
)
|
(249,622
|
)
|
||||||
Income tax expense
|
4,649
|
11,963
|
(7,314
|
)
|
||||||||
Loss from continuing operations, net of tax
|
(273,911
|
)
|
(31,603
|
)
|
(242,308
|
)
|
||||||
Income from discontinued operations, net of tax
|
—
|
89,093
|
(89,093
|
)
|
||||||||
Net (loss) income
|
(273,911
|
)
|
57,490
|
(331,401
|
)
|
|||||||
Net loss attributable to noncontrolling interests
|
(50,556
|
)
|
(37,807
|
)
|
(12,749
|
)
|
||||||
Net (loss) income attributable to Roivant Sciences Ltd.
|
$
|
(223,355
|
)
|
$
|
95,297
|
$
|
(318,652
|
)
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
Revenue
|
$
|
2,170
|
$
|
7,990
|
$
|
(5,820
|
)
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024(1)
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
Program-specific costs:
|
||||||||||||
Anti-FcRn franchise—neurological diseases
|
$
|
20,937
|
$
|
18,479
|
$
|
2,458
|
||||||
Anti-FcRn franchise—endocrine diseases
|
19,329
|
15,913
|
3,416
|
|||||||||
Anti-FcRn franchise—rheumatology diseases
|
8,209
|
—
|
8,209
|
|||||||||
Anti-FcRn franchise—dermatology diseases
|
5,145
|
—
|
5,145
|
|||||||||
Anti-FcRn franchise—other clinical and nonclinical
|
2,392
|
6,401
|
(4,009
|
)
|
||||||||
Brepocitinib
|
15,020
|
10,594
|
4,426
|
|||||||||
Mosliciguat
|
8,385
|
2,980
|
5,405
|
|||||||||
Other development and discovery programs (2)
|
10,236
|
15,515
|
(5,279
|
)
|
||||||||
Total program-specific costs
|
89,653
|
69,882
|
19,771
|
|||||||||
Unallocated internal costs:
|
||||||||||||
Share-based compensation
|
11,099
|
10,532
|
567
|
|||||||||
Personnel-related expenses
|
42,530
|
31,545
|
10,985
|
|||||||||
Other expenses
|
9,637
|
8,548
|
1,089
|
|||||||||
Total research and development expenses
|
$
|
152,919
|
$
|
120,507
|
$
|
32,412
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
General and administrative
|
$
|
134,019
|
$
|
99,892
|
$
|
34,127
|
Three Months Ended June 30,
|
Remaining
Expense as of
|
|||||||||||
2025
|
2024
|
June 30, 2025
|
||||||||||
(in thousands)
|
||||||||||||
Cash Bonus Program
|
$
|
2,111
|
$
|
6,924
|
$
|
2,399
|
||||||
2024 Senior Executive Compensation Program:
|
||||||||||||
Cash awards
|
3,660
|
—
|
3,659
|
|||||||||
Performance restricted stock units
|
30,157
|
—
|
165,866
|
|||||||||
Restricted stock units
|
2,307
|
—
|
43,073
|
|||||||||
Stock options
|
174
|
—
|
2,119
|
|||||||||
Total
|
$
|
38,409
|
$
|
6,924
|
$
|
217,116
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
Gain on sale of Telavant net assets
|
$
|
—
|
$
|
110,387
|
$
|
(110,387
|
)
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
Change in fair value of investments
|
$
|
19,125
|
$
|
(15,226
|
)
|
$
|
34,351
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
Interest income
|
$
|
(48,322
|
)
|
$
|
(72,127
|
)
|
$
|
23,805
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
Income tax expense
|
$
|
4,649
|
$
|
11,963
|
$
|
(7,314
|
)
|
Three Months Ended June 30,
|
||||||||||||
2025
|
2024
|
Change
|
||||||||||
(in thousands)
|
||||||||||||
Income from discontinued operations, net of tax
|
$
|
—
|
$
|
89,093
|
$
|
(89,093
|
)
|
• |
obligations under our leases (refer to Note 11, “Leases” in our Annual Report on Form 10-K for the year ended March 31, 2025 for further information regarding our lease commitments); and
|
• |
certain commitments to Samsung Biologics Co., Ltd. (“Samsung”) pursuant to a Product Service Agreement (“PSA”) entered into between Immunovant and Samsung pursuant to which Samsung will manufacture and supply Immunovant with
batoclimab drug substance for commercial sale, if approved, and perform other manufacturing-related services with respect to batoclimab. Upon execution of the PSA, Immunovant committed to purchase process performance qualification
batches of batoclimab and pre-approval inspection batches of batoclimab which may be used for regulatory submissions and, pending regulatory approval, commercial sale. In addition, Immunovant has a minimum obligation to purchase
additional batches of batoclimab in the four-year period of 2026 through 2029. As of June 30, 2025, the remaining minimum purchase commitment related to this agreement was estimated to be
approximately $43.1 million.
|
• |
fund preclinical studies and clinical trials for our product candidates, which we are pursuing or may choose to pursue in the future;
|
• |
fund the manufacturing of drug substance and drug product of our product candidates in development;
|
• |
seek to identify, acquire, develop and commercialize additional product candidates;
|
• |
invest in activities related to the discovery of novel drugs and advancement of our internal programs;
|
• |
integrate acquired product candidates or technologies into a comprehensive regulatory and product development strategy;
|
• |
maintain, expand and protect our intellectual property portfolio;
|
• |
hire scientific, clinical, quality control and administrative personnel;
|
• |
add operational, financial and management information systems and personnel, including personnel to support our drug development efforts;
|
• |
achieve milestones under our agreements with third parties that will require us to make substantial payments to those parties;
|
• |
seek regulatory approvals for any product candidates that successfully complete clinical trials;
|
• |
build out our sales, marketing and distribution infrastructure and scale up external manufacturing capabilities to commercialize any drug candidates for which we may obtain regulatory approval; and
|
• |
operate as a public company.
|
Three Months Ended June 30,
|
||||||||
2025
|
2024
|
|||||||
(in thousands)
|
||||||||
Net cash used in operating activities
|
$
|
(204,383
|
)
|
$
|
(192,829
|
)
|
||
Net cash used in investing activities
|
$
|
(1,085,716
|
)
|
$
|
(965
|
)
|
||
Net cash used in financing activities
|
$
|
(187,768
|
)
|
$
|
(660,616
|
)
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4. |
Controls and Procedures.
|
Item 1. |
Legal Proceedings.
|
Item 1A. |
Risk Factors.
|
• |
successfully progress and complete our ongoing and future clinical trials;
|
• |
identify and consummate new acquisition or in-licensing opportunities, and then advance the acquired or in-licensed product candidates through clinical trials;
|
• |
obtain regulatory approvals for our current and future product candidates;
|
• |
successfully launch commercial sales of our product candidates following regulatory approvals, whether alone or in collaboration with others, including establishing sales, marketing and distribution systems;
|
• |
set acceptable prices for our product candidates following regulatory approvals and obtain coverage and adequate reimbursement from third-party payors;
|
• |
achieve market acceptance of our product candidates following regulatory approvals in the medical community and with third-party payors and consumers;
|
• |
make milestone, royalty or other payments due under any licenses or agreements;
|
• |
obtain, maintain, expand, protect and enforce our intellectual property portfolio, including intellectual property obtained through license agreements;
|
• |
realize the benefits of our strategic partnerships and other collaborations, including the Dermavant Transaction;
|
• |
attract, hire and retain experienced management teams and qualified personnel to support our ongoing clinical development efforts, including at existing and newly-formed Vants, and successfully prepare for the
commercialization of our product candidates following regulatory approvals;
|
• |
initiate and maintain relationships with third-party suppliers and manufacturers and have commercial quantities of product candidates, following regulatory approvals, manufactured at acceptable cost and
quality levels and in compliance with FDA and other regulatory requirements;
|
• |
negotiate favorable terms in any collaboration, licensing or other arrangements into which we may enter;
|
• |
raise additional funds when needed and on terms acceptable to us;
|
• |
successfully grow our healthcare technology Vants and market the products and services offered by those Vants;
|
• |
defend against any product liability claims or other lawsuits related to our product candidates; and
|
• |
continue to meet the requirements of being a public company, including requirements under the Sarbanes-Oxley Act of 2002 (“SOX”) and continue to protect our business operations and systems from cybersecurity
threats.
|
• |
in connection with divestiture or other sale or partnering transactions:
|
• |
the failure to realize the expected benefits from the transaction, including receiving milestone and royalty payments owed in connection with the transaction; and
|
• |
risks and uncertainties associated with the counterparty to any such transaction, including their ability to successfully develop and commercialize a product candidate such that milestone and royalty payments
are triggered or their ability to make milestone and royalty payments when such payments are due;
|
• |
in connection with acquisition or in-licensing transactions:
|
• |
the risks generally applicable to biopharmaceutical drug development, including that the acquired or in-licensed program does not generate the expected clinical outcomes, that the expected timelines for the
clinical program are delayed or otherwise slower than expected, that safety or tolerability issues arise in the clinical trials or that other regulatory issues arise, including the inability to receive regulatory approvals on the
expected timelines or at all;
|
• |
the ability following applicable regulatory approvals to generate revenues from an acquired product candidate or program sufficient to meet our objectives or offset the associated transaction and maintenance
costs;
|
• |
risks associated with the transfer or integration of the operations of an acquired entity or program, including difficulties associated with integrating any new personnel; and
|
• |
increased operating expenses and cash requirements, the assumption of indebtedness or contingent liabilities or the issuance of our equity securities in connection with such a transaction, which would result
in dilution to our shareholders;
|
• |
the diversion of our management’s attention from existing programs and other operational matters; and
|
• |
the loss of key employees and other uncertainties, including our ability to maintain key business relationships at the acquired entity, that may arise in connection with a given transaction.
|
• |
the inability to generate sufficient data to support the initiation or continuation of clinical trials;
|
• |
difficulty identifying patients and enrolling them in clinical trials and other studies, including as a result of competing trials run by other pharmaceutical companies;
|
• |
the failure to add, or delays in activating, a sufficient number of clinical trial sites;
|
• |
the inability to reach agreement on acceptable terms with prospective CROs and clinical trial sites, the terms of which can be subject to extensive negotiation and may vary significantly among different CROs
and trial sites;
|
• |
the failure by our CROs or other third parties to adhere to clinical trial agreements;
|
• |
the failure to manufacture or release sufficient quantities of our product candidates or failure to obtain sufficient quantities of active comparator medications for our clinical trials, if applicable, that in
each case meet our quality standards, for use in clinical trials;
|
• |
the inability or unwillingness of clinical investigators or study participants to follow our clinical and other applicable protocols or applicable regulatory requirements;
|
• |
unforeseen safety issues, or subjects experiencing severe or unexpected adverse events;
|
• |
a lack of clinical benefit or effectiveness being demonstrated during clinical trials;
|
• |
the occurrence of serious adverse events in trials of the same class of agents conducted by other sponsors;
|
• |
premature discontinuation of study participants from clinical trials or missing data;
|
• |
the inability to monitor patients adequately during or after treatment;
|
• |
inappropriate unblinding of trial results;
|
• |
changes in the market that render continued development of a product candidate no longer reasonable or commercially attractive;
|
• |
the cost of clinical trials of our product candidates being greater than we anticipated;
|
• |
unanticipated impact from changes in or modifications to protocols or clinical trial design, including those that may be required by the FDA or other regulatory authorities;
|
• |
the failure to obtain regulatory authorization to commence a clinical trial or reach consensus with regulatory authorities regarding the design or implementation of our studies;
|
• |
resolving any dosing issues, including those raised by the FDA or other regulatory authorities;
|
• |
changes in regulatory requirements and guidance that require amending or submitting new clinical protocols;
|
• |
changes in the approval policies or regulations of the FDA or other regulatory authorities;
|
• |
an IRB or EC refusing to approve, suspending, or terminating the trial at an investigational site, precluding enrollment of additional subjects, or withdrawing their approval of the trial; or
|
• |
other regulatory issues, including the receipt of any inspectional observations on FDA’s Form-483, Warning or Untitled Letters, clinical holds or complete response letters or similar communications/objections
by other regulatory authorities.
|
• |
the size and characteristics of the patient population;
|
• |
the patient eligibility criteria defined in the protocol, including biomarker-driven identification and certain highly-specific criteria related to stage of disease progression, which may limit the patient
populations eligible for our clinical trials to a greater extent than competing clinical trials for the same indication that do not have biomarker-driven patient eligibility criteria;
|
• |
the design of the trial, including the size of the study population required for analysis of the trial’s primary endpoints;
|
• |
the number and location of clinical trials sites, including the proximity of patients to trial sites;
|
• |
our ability to recruit clinical trial investigators with the appropriate competencies and experience;
|
• |
competing clinical trials for similar therapies or targeting patient populations meeting our patient eligibility criteria;
|
• |
clinicians’ and patients’ perceptions as to the potential advantages and side effects of the product candidate being studied in relation to other available therapies and product candidates;
|
• |
our ability to obtain and maintain patient consents; and
|
• |
the risk that patients enrolled in clinical trials will not complete such trials, for any reason, including the risk of higher drop-out rates if participants become infected with a virus or other infectious
disease that impacts their participation in our trials.
|
• |
we may not be able to demonstrate that a product candidate is safe and effective as a treatment for the targeted indications, and in the case of our product candidates regulated as biological products, that
the product candidate is safe, pure and potent for use in its targeted indication, to the satisfaction of the FDA or other relevant regulatory authorities;
|
• |
a product candidate may be shown to have harmful side effects or other characteristics that indicate it is unlikely to be effective or otherwise does not meet applicable regulatory criteria;
|
• |
the FDA or other relevant regulatory authorities may require additional pre-approval studies or clinical trials, which would increase costs and prolong development timelines;
|
• |
the results of clinical trials may not meet the level of statistical or clinical significance required by the FDA or other relevant regulatory authorities for marketing approval;
|
• |
the FDA or other relevant regulatory authorities may disagree with the number, design, size, conduct or implementation of clinical trials, including the design of proposed preclinical and early clinical trials
of any future product candidates;
|
• |
the CROs that we retain to conduct clinical trials may take actions outside of our control, or otherwise commit errors or breaches of protocols, that adversely impact the clinical trials and ability to obtain
marketing approvals;
|
• |
the FDA or other relevant regulatory authorities may not find the data from nonclinical, preclinical studies or clinical trials sufficient to demonstrate that the clinical and other benefits of a product
candidate outweigh its safety risks;
|
• |
the FDA or other relevant regulatory authorities may disagree with an interpretation of data or significance of results from nonclinical, preclinical studies or clinical trials or may require additional
studies;
|
• |
the FDA or other relevant regulatory authorities may not accept data generated at clinical trial sites, including in situations where the authorities deem that the data was not generated in compliance with
GCP, ethical standards or applicable data protection laws;
|
• |
if an NDA, BLA or a similar application is referred for review by an advisory committee, the FDA or other relevant regulatory authority, as the case may be, may have difficulties scheduling an advisory
committee meeting in a timely manner or the advisory committee may recommend against approval of our application or may recommend that the FDA or other relevant regulatory authorities, as the case may be, require, as a condition of
approval, additional nonclinical, preclinical studies or clinical trials, limitations on approved labeling or distribution and use restrictions;
|
• |
the FDA or other relevant regulatory authorities may require development of a risk evaluation and mitigation strategy (“REMS”) drug safety program or its equivalent, as a condition of approval;
|
• |
the FDA or other relevant regulatory authorities may require additional post-marketing studies and patient registries for product candidates;
|
• |
the FDA or other relevant regulatory authorities may find the chemistry, manufacturing and controls data insufficient to support the quality of our product candidates;
|
• |
the FDA or other relevant regulatory authorities may identify deficiencies in the manufacturing processes or facilities of third-party manufacturers; or
|
• |
the FDA or other relevant regulatory authorities may change their approval policies or adopt new regulations.
|
• |
regulatory authorities may withdraw, revoke, suspend, vary or limit their approval of the product candidate or require a REMS (or equivalent outside the U.S.) to impose restrictions on its distribution or
other risk management measures;
|
• |
regulatory authorities may request or require that we recall a product candidate;
|
• |
additional restrictions being imposed on the distribution, marketing or manufacturing processes of our product candidates or any components thereof, including a “black box” warning or contraindication on
product labels or communications containing warnings or other safety information about the product candidate;
|
• |
regulatory authorities may require the addition of labeling statements, such as warnings or contraindications, require other labeling changes of a product candidate or require field alerts or other
communications to physicians, pharmacies or the public;
|
• |
we may be required to change the way a product candidate is administered or distributed, conduct additional clinical trials, change the labeling of a product candidate or conduct additional post-marketing
studies or surveillance;
|
• |
we may be required to repeat preclinical studies or clinical trials or terminate programs for a product candidate, even if other studies or trials related to the program are ongoing or have been successfully
completed;
|
• |
we may be sued and held liable for harm caused to patients, or may be subject to fines, restitution or disgorgement of profits or revenues;
|
• |
physicians may stop prescribing a product candidate;
|
• |
reimbursement may not be available for a product candidate;
|
• |
we may elect to discontinue the sale of a product candidate;
|
• |
our product candidates may become less competitive; and
|
• |
our reputation may suffer.
|
• |
monitoring and assuring regulatory compliance for clinical trials, manufacturing and testing of good applicable practice (“GxP”) (e.g., GCP, Good Laboratory Practices (“GLP”) and Good Manufacturing Practices
(“GMP”) regulated) products;
|
• |
monitoring and providing oversight of all GxP suppliers (e.g., contract development manufacturing organizations and CROs);
|
• |
establishing and maintaining an integrated, robust quality management system for clinical, manufacturing, supply chain and distribution operations; and
|
• |
cultivating a proactive, preventative quality culture and employee and supplier training to ensure quality.
|
• |
the efficacy and potential advantages compared to alternative treatments;
|
• |
the ability to offer these products for sale at competitive prices;
|
• |
the ability to offer appropriate patient financial assistance programs, such as commercial insurance co-pay assistance;
|
• |
convenience and ease of dosing and administration compared to alternative treatments;
|
• |
the clinical indications for which the product candidate is approved by FDA or comparable non-U.S. regulatory agencies;
|
• |
product labeling or product insert requirements of the FDA or other comparable non-U.S. regulatory authorities, including any limitations, contraindications or warnings contained in a product’s approved
labeling;
|
• |
restrictions on how the product candidate is dispensed or distributed;
|
• |
the timing of market introduction of competitive products;
|
• |
publicity and health authority communications concerning our product candidates or competing products and treatments;
|
• |
the strength of marketing and distribution support;
|
• |
product cost and sufficient third-party insurance coverage or reimbursement, and patients’ willingness to pay out-of-pocket in the absence of third-party coverage or adequate reimbursement; and
|
• |
safety and the prevalence and severity of any side effects or adverse events.
|
• |
the inability to recruit and retain adequate numbers of effective sales, marketing, reimbursement, customer service, medical affairs and other support personnel;
|
• |
the inability of sales personnel to obtain access to physicians or persuade adequate numbers of physicians to prescribe any future approved products;
|
• |
the inability of reimbursement professionals to negotiate arrangements for formulary access, reimbursement and other acceptance by payors;
|
• |
the inability to price products at a sufficient price point to ensure an adequate and attractive level of profitability;
|
• |
restricted or closed distribution channels that make it difficult to distribute our products to segments of the patient population;
|
• |
the lack of complementary products to be offered by sales personnel, which may put us at a competitive disadvantage relative to companies with more extensive product lines; and
|
• |
unforeseen costs and expenses associated with creating an independent commercialization organization.
|
• |
the federal Anti-Kickback Statute, which is a criminal law that prohibits, among other things, persons and entities from knowingly and willfully soliciting, offering, receiving or providing remuneration,
directly or indirectly, in cash or in kind, to induce or reward, or in return for, either the referral of an individual for, or the purchase, lease, order or recommendation of, any good, facility, item or service, for which payment may
be made, in whole or in part, under a federal healthcare program (such as Medicare and Medicaid). The term “remuneration” has been broadly interpreted by the federal government to include anything of value. Although there are a number
of statutory exceptions and regulatory safe harbors protecting certain activities from prosecution, the exceptions and safe harbors are drawn narrowly, and arrangements may be subject to scrutiny or penalty if they do not fully satisfy
all elements of an available exception or safe harbor. Practices that involve remuneration that may be alleged to be intended to induce prescribing, purchases or recommendations may be subject to scrutiny if they do not qualify for an
exception or safe harbor. A person or entity does not need to have actual knowledge of the federal Anti-Kickback Statute or specific intent to violate it to have committed a violation; in addition, the government may assert that a claim
including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the False Claims Act. Violations of the federal Anti-Kickback Statute may result in
civil monetary penalties up to $100,000 for each violation. Civil penalties for such conduct can further be assessed under the federal False Claims Act. Violations can also result in criminal penalties, including criminal fines and
imprisonment of up to 10 years. Similarly, violations can result in exclusion from participation in government healthcare programs, including Medicare and Medicaid;
|
• |
the federal false claims laws, including the False Claims Act, which imposes civil penalties, including through civil whistleblower or qui tam actions, against individuals or entities for knowingly presenting,
or causing to be presented, to the federal government, claims for payment that are false or fraudulent; knowingly making, using or causing to be made or used, a false record or statement material to a false or fraudulent claim; or
knowingly making or causing to be made, a false statement to avoid, decrease or conceal an obligation to pay money to the federal government. The False Claims Act provides for suit by the federal government or private parties (qui tam relator) and when an entity is determined to have violated the federal civil False Claims Act, the government may impose significant civil fines and penalties for each false claim or
statement for penalties assessed after January 30, 2023, plus treble damages, and exclude the entity from participation in Medicare, Medicaid and other federal healthcare programs;
|
• |
the federal health care fraud statute (established by HIPAA), which imposes criminal and civil liability for, among other things, knowingly and willfully executing, or attempting to execute, a scheme to
defraud any healthcare benefit program or making false or fraudulent statements relating to healthcare matters; similar to the federal Anti-Kickback Statute, a person or entity does not need to have actual knowledge of the statute or
specific intent to violate it to have committed a violation;
|
• |
the Administrative Simplification provisions of HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (“HITECH”), and their implementing regulations, which impose
obligations, including mandatory contractual terms, with respect to safeguarding the privacy, security, and transmission of individually identifiable health information on health plans, health care clearinghouses, and most healthcare
providers (collectively, “covered entities”), and such covered entities’ “business associates,” defined as independent contractors or agents of covered entities that create, receive or obtain personally identifiable health information
in connection with providing a service for or on behalf of the covered entity;
|
• |
various privacy, cybersecurity and data protection laws, rules and regulations at the international, federal, state and local level, which impose obligations with respect to safeguarding the privacy, security,
and cross-border transmission of personally identifiable data, including personal health information;
|
• |
the federal Civil Monetary Penalties Law, which authorizes the imposition of substantial civil monetary penalties against an entity that engages in activities including, among others (1) knowingly presenting,
or causing to be presented, a claim for services not provided as claimed or that is otherwise false or fraudulent in any way; (2) arranging for or contracting with an individual or entity that is excluded from participation in federal
health care programs to provide items or services reimbursable by a federal health care program; (3) violations of the federal Anti-Kickback Statute; or (4) failing to report and return a known overpayment;
|
• |
the federal Physician Payments Sunshine Act, which requires certain manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children’s
Health Insurance Program (with certain exceptions) to report annually to the government information related to payments or other “transfers of value” made to physicians, certain other healthcare providers and teaching hospitals, and
requires applicable manufacturers and group purchasing organizations to report annually to the government ownership and investment interests held by the physicians described above and their immediate family members and payments or other
“transfers of value” to such physician owners (covered manufacturers are required to submit reports to the government by the 90th day of each calendar year);
|
• |
analogous state and E.U. and foreign national laws and regulations, such as state anti-kickback and false claims laws, which may apply to our business practices, including but not limited to, research,
distribution, sales and marketing arrangements and claims involving healthcare items or services reimbursed by non-governmental third-party payors, including private insurers, or otherwise restrict payments that may be made to
healthcare providers and other potential referral sources; state laws that require pharmaceutical companies to comply with the pharmaceutical industry’s voluntary compliance guidelines and the relevant compliance guidance promulgated by
the federal government, and state laws that require drug manufacturers to report information related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures;
|
• |
U.S. federal drug price reporting and government contracting statutes and regulations, the violation of which can lead to civil penalties, debarment and enforcement under the federal False Claims Act, and
certain local and state laws that require disclosures to state agencies or boards and commercial purchasers, for example, with respect to certain price increases, some of which contain ambiguous requirements that government officials
have not yet clarified; and
|
• |
E.U. and foreign national laws prohibiting promotion of prescription-only medicinal products to individuals other than healthcare professionals, governing strictly all aspects of interactions with healthcare
professionals and healthcare organizations, including prior notification, review and approval of agreements with healthcare professionals, and requiring public disclosure of transfers of value made to a broad range of stakeholders,
including healthcare professionals, healthcare organizations, medical students, physicians associations, patient organizations and editors of specialized press.
|
• |
the demand for our product candidates following regulatory approval;
|
• |
our ability to receive or set a price that we believe is fair for our product candidates following regulatory approval;
|
• |
our ability to generate revenue and achieve sustained profitability; and
|
• |
the amount of taxes that we are required to pay.
|
• |
inability to meet our product specifications and quality requirements consistently;
|
• |
delay or inability to procure or expand sufficient manufacturing capacity;
|
• |
manufacturing and product quality issues related to scale-up of manufacturing;
|
• |
costs and validation of new equipment and facilities required for scale-up;
|
• |
failure to comply with applicable laws, regulations and standards, including cGMP and similar standards;
|
• |
deficient or improper record-keeping;
|
• |
inability to negotiate manufacturing agreements with third parties under commercially reasonable terms;
|
• |
termination or nonrenewal of manufacturing agreements with third parties in a manner or at a time that is costly or damaging to us;
|
• |
reliance on a limited number of sources, and in some cases, single sources for product components, such that if we are unable to secure a sufficient supply of these product components, we will be unable to
manufacture and sell our product candidates following regulatory approval in a timely fashion, in sufficient quantities or under acceptable terms;
|
• |
lack of qualified backup suppliers for those components that are currently purchased from a sole or single source supplier;
|
• |
operations of our third-party manufacturers or suppliers could be disrupted by conditions unrelated to our business or operations, including the bankruptcy of the manufacturer or supplier or other regulatory
sanctions related to the manufacturer of another company’s product candidates;
|
• |
carrier disruptions or increased costs that are beyond our control; and
|
• |
failure to deliver our product candidates under specified storage conditions and in a timely manner.
|
• |
multiple conflicting and changing laws and regulations such as tax laws, export and import restrictions, employment laws, anti-bribery and anti-corruption laws, regulatory requirements and other governmental
approvals, permits and licenses;
|
• |
failure by us or our collaborators to obtain appropriate licenses or regulatory approvals for the sale or use of our product candidates in various countries;
|
• |
difficulties in managing operations in different jurisdictions;
|
• |
complexities associated with managing multiple payor-reimbursement regimes or self-pay systems;
|
• |
financial risks, such as longer payment cycles, difficulty enforcing contracts and collecting accounts receivable and exposure to currency exchange rate fluctuations;
|
• |
varying protection for intellectual property rights;
|
• |
natural disasters, political and economic instability, including wars, terrorism and political unrest, outbreak of disease, boycotts, curtailment of trade and other business restrictions; and
|
• |
failure to comply with the U.S. Foreign Corrupt Practices Act (the “FCPA”), including its books and records provisions and its anti-bribery provisions, the United Kingdom Bribery Act 2010 (the “U.K. Bribery
Act”), and similar anti-bribery and anti-corruption laws in other jurisdictions, for example by failing to maintain accurate information and control over sales or distributors’ activities.
|
• |
VYVGART (efgartigimod alfa-fcab) and VYVGART Hytrulo (efgartigimod alfa and hyaluronidase-qvfc), neonatal Fc receptor blockers, potential competitors to IMVT-1402;
|
• |
IMAAVY (nipocalimab-aahu) and RYSTIGGO (rozanolixizumab-noli), anti-FcRn antibodies, potential competitors to IMVT-1402;
|
• |
TEPEZZA (teprotumumab-trbw), an insulin-like growth factor-1 receptor inhibitor, a potential competitor to batoclimab;
|
• |
Dazukibart, an interferon beta (IFN-beta) inhibitor, a potential competitor to brepocitinib; and
|
• |
Tyvaso (treprostinil), a prostacyclin mimetic, a potential competitor to mosliciguat.
|
• |
the scope of rights granted under the license agreement and other interpretation-related issues;
|
• |
our financial or other obligations under the license agreement;
|
• |
the extent to which our technology or product candidates may infringe on intellectual property of the licensor that is not subject to the licensing agreement;
|
• |
the sublicensing of patent and other rights;
|
• |
our diligence obligations under the license agreements and what activities satisfy those diligence obligations;
|
• |
the inventorship or ownership of inventions and know-how resulting from the joint creation or use of intellectual property by our licensors and us and our partners; and
|
• |
the priority of invention of patented technology.
|
• |
Canada: Federal Court of Canada File No. T-704-25, seeking a permanent injunction and damages or, if GSG so elects, an accounting of Moderna’s profits, attributable to infringement of Canadian Patent No.
2,721,333.
|
• |
Japan: Tokyo District Court Case No. 2025 (Wa) 70079, seeking a permanent injunction and reasonable royalty for infringement of Japanese Patent No. 5,475,753.
|
• |
Switzerland: filing a case, seeking a permanent injunction and monetary relief, which upon later choice of GSG and Arbutus can include surrender of profits, damages or a reasonable royalty, for infringement of
EP 2 279 254.
|
• |
Unified Patent Court (“UPC”): Case 10280/2025, seeking permanent and provisional injunctions, as well as monetary damages, which can include recovery of Moderna’s unfair profits, for infringement of EP 2 279
254.
|
• |
UPC: Case 10284/2025, seeking permanent and provisional injunctions, as well as monetary damages, which can include recovery of Moderna’s unfair profits, for infringement of EP 4 241 767.
|
• |
others may be able to make formulations or compositions that are the same as or similar to our product candidates, but that are not covered by the claims of the patents that we own;
|
• |
others may be able to make products that are similar to our product candidates that we intend to commercialize that are not covered by the patents that we exclusively licensed and have the right to enforce;
|
• |
we, our licensor or any collaborators might not have been the first to make or reduce to practice the inventions covered by the issued patents or pending patent applications that we own or have exclusively licensed;
|
• |
we or our licensor or any collaborators might not have been the first to file patent applications covering certain of our inventions;
|
• |
others may independently develop similar or alternative technologies or duplicate any of our technologies without infringing our intellectual property rights;
|
• |
it is possible that our pending patent applications will not lead to issued patents;
|
• |
issued patents that we own or have exclusively licensed may not provide us with any competitive advantages, or may be held invalid or unenforceable as a result of legal challenges;
|
• |
our competitors might conduct research and development activities in the U.S. and other countries that provide a safe harbor from patent infringement claims for certain research and development activities, as well as in countries
where we do not have patent rights, and then use the information learned from such activities to develop competitive product candidates for sale in our major commercial markets; and we may not develop additional proprietary technologies
that are patentable;
|
• |
third parties performing manufacturing or testing for us using our product candidates or technologies could use the intellectual property of others without obtaining a proper license;
|
• |
parties may assert an ownership interest in our intellectual property and, if successful, such disputes may preclude us from exercising exclusive rights over that intellectual property;
|
• |
we may not develop or in-license additional proprietary technologies that are patentable;
|
• |
we may not be able to obtain and maintain necessary licenses on commercially reasonable terms, or at all;
|
• |
the patents of others may harm our business; and
|
• |
we may choose not to file a patent application in order to maintain certain trade secrets or know-how, and a third party may subsequently file a patent application covering such intellectual property.
|
• |
actual or anticipated fluctuations in our quarterly and annual financial results or the quarterly and annual financial results of companies perceived to be similar to it;
|
• |
changes in the market’s expectations about operating results;
|
• |
our operating results failing to meet market expectations in a particular period;
|
• |
a Vant’s operating results failing to meet market expectations in a particular period, which could impact the market prices of shares of a public Vant or the valuation of a private Vant, and in turn adversely impact the trading price
of our common shares;
|
• |
receipt of marketing approval for a product candidate in one or more jurisdictions, or the failure to receive such marketing approval;
|
• |
the results of clinical trials or preclinical studies conducted by us and the Vants;
|
• |
changes in financial estimates and recommendations by securities analysts concerning us, the Vants or the biopharmaceutical industry and market in general;
|
• |
operating and stock price performance of other companies that investors deem comparable to us;
|
• |
changes in laws and regulations affecting our and the Vants’ businesses;
|
• |
the outcome of litigation or other claims or proceedings, including governmental and regulatory proceedings;
|
• |
changes in our capital structure, such as future issuances of securities or the incurrence of debt;
|
• |
the volume of our common shares available for public sale and the relatively limited free float of our common shares;
|
• |
any significant change in our board of directors or management;
|
• |
sales of substantial amounts of our common shares by directors, executive officers or significant shareholders or the perception that such sales could occur; and
|
• |
general economic and political conditions such as recessions, interest rates, tariffs and trade conditions in the global economy, commodity prices, international currency fluctuations and acts of war or terrorism.
|
• |
a classified board of directors with staggered three-year terms;
|
• |
the ability of our board of directors to determine the powers, preferences and rights of preference shares and to cause us to issue the preference shares without shareholder approval; and
|
• |
requiring advance notice for shareholder proposals and nominations and placing limitations on convening shareholder meetings.
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Period
|
Total
Number of
Common
Shares
Purchased(1)
|
Average
Price Paid
per
Common
Share
|
Total
Number of
Common
Shares
Purchased as
Part of
Publicly
Announced
Programs(1)
|
Approximate
Dollar
Value of
Common
Shares that
May Yet
Be Purchased
Under
the
Programs(1)
|
||||||||||||
(in millions)
|
||||||||||||||||
April 1 – 30, 2025
|
13,672,384
|
$
|
9.89
|
13,672,384
|
$
|
69.9
|
||||||||||
May 1 – 31, 2025
|
5,453,666
|
$
|
11.04
|
5,453,666
|
$
|
9.7
|
||||||||||
June 1 – 30, 2025
|
873,400
|
$
|
11.16
|
873,400
|
$
|
500.0
|
||||||||||
Total
|
19,999,450
|
19,999,450
|
(1) |
On April 2, 2024, we announced that our board of directors had authorized a common share repurchase program, allowing for repurchases of Roivant common shares in an aggregate amount of up to $1.5 billion (excluding fees and
expenses). On June 25, 2025, we announced that our board of directors had authorized an additional common share repurchase program of Roivant common shares of up to $500 million (excluding fees and expenses). This new authorization is
in addition to the $1.5 billion common share repurchase program referenced above, which was fully exhausted as of June 30, 2025. The timing and total amount of common shares repurchased under the new authorization, as with the prior
authorization, depends on several factors, including the market price of our common shares, general business, macroeconomic and market conditions and other investment opportunities. Under the new repurchase program, as with the prior
repurchase program, purchases may be conducted through open market transactions, tender offers or privately negotiated transactions, including the use of trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as
amended. See Note 8–Shareholders’ Equity in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information related to share repurchases. Table excludes fees and commissions payable in connection with common share
repurchases.
|
* |
In addition to the repurchase transactions set forth above, during the three months ended June 30, 2025, we withheld 879,308 common shares associated with net share settlements to cover tax withholding obligations upon the vesting
and settlement of equity incentive awards issued under our equity incentive plans, including RSUs and CVARs.
|
Item 3. |
Defaults Upon Senior Securities.
|
Item 4. |
Mine Safety Disclosures.
|
Item 5. |
Other Information.
|
Item 6. |
Exhibits.
|
Incorporated by Reference
|
|||||
Exhibit
Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Letter of Offer for Employment between Roivant Sciences, Inc. and Jennifer Humes, dated as of February 7, 2025.
|
—
|
—
|
—
|
Filed herewith
|
|
Amended & Restated Executive Employment Agreement between Roivant Sciences, Inc. and Eric Venker, dated as of July 28, 2025.
|
—
|
—
|
—
|
Filed herewith
|
|
Employment Agreement between Immunovant, Inc. and Eric Venker, dated as of July 28, 2025.
|
— | — | — | Filed herewith | |
Form of Capped Value Appreciation Right Award Grant Notice and Award Agreement under 2019 Equity Incentive Plan of Immunovant, Inc.
|
— | — | — | Filed herewith | |
Forms of Option Grant Notices and Option Agreements under 2019 Equity Incentive Plan of Immunovant, Inc.
|
10-K
|
001-38906
|
10.3.1
|
June 29, 2020
|
|
|
|||||
2019 Equity Incentive Plan of Immunovant, Inc.
|
10-K | 001-38906 | 10.3 |
June 29, 2020
|
|
Special Equity Award Opportunity Letter, dated as of July 26, 2024.
|
—
|
—
|
—
|
Filed herewith
|
|
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
—
|
—
|
—
|
Filed herewith
|
|
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
—
|
—
|
—
|
Filed herewith
|
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
—
|
—
|
—
|
Filed herewith
|
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
—
|
—
|
—
|
Filed herewith
|
|
101.INS
|
Inline XBRL Instance Document
|
—
|
—
|
—
|
Filed herewith
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
—
|
—
|
—
|
Filed herewith
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
—
|
—
|
—
|
Filed herewith
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
—
|
—
|
—
|
Filed herewith
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
—
|
—
|
—
|
Filed herewith
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
—
|
—
|
—
|
Filed herewith
|
104
|
Cover Page Interactive Data (formatted as Inline XBRL and contained in Exhibit 101)
|
—
|
—
|
—
|
Filed herewith
|
Dated: August 11, 2025
|
ROIVANT SCIENCES LTD.
|
|
By:
|
/s/ Matthew Gline
|
|
Name: Matthew Gline
|
||
Title: Principal Executive Officer
|
||
By:
|
/s/ Richard Pulik
|
|
Name: Richard Pulik
|
||
Title: Principal Financial Officer
|
||
By:
|
/s/ Keyur Parekh
|
|
Name: Keyur Parekh
|
||
Title: Authorized Signatory
|
Position: | Chief Accounting Officer |
|
|
Reporting To: | Richard Pulik, Chief Financial Officer Accounting |
|
|
Department: |
Accounting
|
|
|
Target Start Date: | 02/20/2025 |
|
|
Roivant Work |
|
Assignment: |
Hybrid - New York Office
|
|
|
Annual Salary: |
$380,000
|
|
|
Sign-on Bonus:
|
$261,500 |
|
|
Target Annual
Cash Bonus:
|
$190,000 (50%)
|
|
|
Target
Annual Total
Compensation:
|
$570,000
|
|
|
Onboarding
Equity
Grant:
|
You will be eligible for a grant of a number of restricted stock units relating to common shares of our parent company, Roivant
Sciences Ltd. (“RSL”) (Nasdaq: ROIV) (the “RSU Grant”), that will have an aggregate estimated cash value as of the grant date of approximately $1,200,000. The actual number of restricted stock units to be granted to you will be determined as of the grant date by dividing the foregoing aggregate estimated cash value by the
fair market value per common share of RSL as of the grant date, as determined by RSL and calculated by reference to the public trading price of RSL’s common stock prior to the grant date (using either a spot or average trading
price, as determined by RSL).
|
|
You will be eligible for a grant of a number of options to purchase common shares in RSL (“Grant Option” and together with the RSU Grant, the “Onboarding Equity Grant”),
that will have an aggregate estimated “Black- Scholes” value as of the grant date of approximately $800.000. The actual number of options to be
granted to you will be determined as of the grant date by dividing the foregoing aggregate estimated cash value by the most recent value of a single option of Roivant Sciences Ltd., in effect as of the grant date, as calculated by RSL
using a “Black-Scholes” valuation methodology (which includes various assumptions).
|
|
|
|
The Onboarding Equity Grant is subject to the
approval of the Board of Directors of RSL (the “Board”) and will be subject in all respects to the terms and conditions of the Roivant Sciences Ltd. 2021 Equity Incentive Plan and the applicable grant documents (which will control in the event of any conflicts with this offer letter), as further described on the following pages.
|
|
|
|
You will be eligible to receive additional
annual equity grants in the future, subject to an assessment, at the Company and the Board’s sole discretion, of your performance as we// as general business conditions at the Company.
|
|
|
Benefits:
|
Our benefits include medical, dental, vision, life and disability insurance, and a 40l(k) program with a company match. Rather than a fixed number of days for vacation, we offer a flexible time-off policy that
empowers employees to take paid time-off as needed to recharge and be as productive as possible, after discussion with their manager - in turn, employees are held accountable for results, not face-time.
|
Best, | |
|
|
/s/ Eric Venker | |
Eric Venker | |
Chief Operating Officer, Roivant Sciences, Inc. |
Agreed and Accepted: | |||||
|
|
||||
By: | /s/ Jennifer Humes |
Date:
|
2/7/2025 | ||
Jennifer Humes |
•
|
Number of RSUs: The exact number of RSUs to be granted to you will be determined as of the grant date by dividing the aggregate
estimated cash value set forth on the first page of this letter by the fair market value per common share of Roivant Sciences Ltd. as of the grant date, as determined by RSL and calculated by reference to the public trading price
of RSL’s common stock prior to the grant date (using either a spot or average trading price, as determined by RSL).
|
•
|
Grant Date: It is anticipated that your RSUs will be granted on the 20th day of the month (or next business day if the 20th day is a weekend or holiday) commencing
after your first day of work.
|
•
|
Vesting: Your RSUs will be subject to a 4-year service-period vesting condition, with 25% vesting on the first anniversary of the vesting
commencement date that will be set forth in the RSU Grant Documents, and the balance of the RSUs vesting in twelve (12) equal quarterly installments thereafter, in each case subject to your continued employment through the applicable
vesting date. Importantly, your RSUs will not vest and become payable unless and until the applicable vesting condition is satisfied (if at all).
|
•
|
Number of Options: The exact number Stock of Options to be granted to you will be determined as of the grant date by dividing the aggregate estimated cash value set forth
on the first page of this letter by the most recent value of a single option of RSL, in effect as of the grant date, as determined by RSL calculated using a “Black-Scholes” valuation methodology (which includes various assumptions).
|
•
|
Exercise Price: The exercise price for your Stock Options will be equal to the fair market value of RSL’s common stock as of the grant date.
|
•
|
Grant Date: It is anticipated that your Stock Options will be granted on the 20th day of the firth full calendar month following you start date (or next business day if the
20th day is a weekend or holiday) commencing after your first day of work.
|
•
|
Vesting/Exercise: Your Stock Options will:
|
i.
|
be subject to a 4-year vesting period, with 25% vesting on the first anniversary of the vesting commencement
date that will be set forth in the Option Grant Documents and the balance of the Stock Options vesting in thirty-six (36) equal monthly installments thereafter, in each case subject to your continued employment through the applicable
vesting date, and
|
ii.
|
expire and cease to be exercisable on the ten (10) year anniversary of the grant date (or earlier in certain circumstances as may be described in the Option Grant Documents).
|
ROIVANT SCIENCES, INC.
|
||
By:
|
/s/ Matthew Gline
|
|
Name: Matthew Gline
|
||
Title: CEO
|
EXECUTIVE
|
||
By:
|
/s/ Eric Venker
|
|
Name: Eric Venker
|
||
Title: President and Immunovant CEO
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Roivant Sciences Ltd.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and
report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 11, 2025
|
|
/s/ Matthew Gline
|
|
Matthew Gline
|
|
Principal Executive Officer
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Roivant Sciences Ltd.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and
report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 11, 2025
|
|
/s/ Richard Pulik
|
|
Richard Pulik
|
|
Principal Financial Officer
|
1. |
The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2025, to which this Certification is attached as Exhibit 32.1 (the “Periodic Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of
the Exchange Act; and
|
2. |
The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: August 11, 2025
|
|
/s/ Matthew Gline
|
|
Matthew Gline
|
|
Principal Executive Officer
|
1. |
The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2025, to which this Certification is attached as Exhibit 32.2 (the “Periodic Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of
the Exchange Act; and
|
2. |
The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: August 11, 2025
|
|
/s/ Richard Pulik
|
|
Richard Pulik
|
|
Principal Financial Officer
|
A. |
The Company desires the association and services of the Executive and the Executive’s skills, abilities, background and knowledge, and is willing to engage the Executive’s services on the terms and
conditions set forth in this Agreement.
|
B. |
The Executive desires to be in the employ of the Company, and is willing to accept such employment on the terms and conditions set forth in this Agreement.
|
C. |
This Agreement supersedes any and all prior and contemporaneous oral or written employment agreements or arrangements between the Executive and the Company or any predecessor thereof.
|
1. |
EMPLOYMENT BY THE COMPANY.
|
1.1. |
Position; Duties. Subject to the terms and conditions of this Agreement, the Executive shall hold the
position of Chief Executive Officer of the Company and of Immunovant, Inc. (the “Parent”). In this position, the Executive will have the duties and authorities normally associated with a Chief
Executive Officer of a public company. The Executive will report to the board of directors of the Parent (the “Parent Board”).
|
1.2. |
Co-Employment Acknowledgment. The Company acknowledges that the Executive will continue to be
employed by RSI with the title “President and Immunovant CEO” and will continue to serve as a director of Parent and certain other affiliates of the Parent.
|
1.3. |
Location of Employment. The Executive’s principal place of employment shall be New York, New York.
The Executive understands that the Executive’s duties also will require periodic business travel.
|
1.4. |
Start Date. The Executive’s employment with the Company commenced on April 21, 2025 (the “Start Date”).
|
1.5. |
Exclusive Employment; Agreement Not to Compete. Except with the prior written consent of the Parent
Board, the Executive will not, during the Executive’s employment with the Company, undertake or engage in any other employment, occupation or business enterprise, and shall not be permitted to serve on the board of directors of any
entity or organization (except with respect to RSI and its affiliates or for (i) reasonable time devoted to volunteer services for or on behalf of such religious, educational, non-profit and/or other charitable organization as Executive
may wish to serve, or (ii) reasonable time devoted to activities in the non-profit and business communities consistent with Executive’s duties).
|
2. |
COMPENSATION AND BENEFITS.
|
2.1. |
Salary. The Company shall pay the Executive a base salary at the annualized rate of $672,000 (the “Base Salary”), less payroll deductions and all required withholdings, payable in regular periodic payments in accordance with the Company’s normal payroll practices, commencing on the first of the
month following the execution of this Agreement. The Base Salary shall be prorated for any partial year of employment on the basis of a 365-day year. The Base Salary shall be subject to periodic review and may be adjusted from time to
time in the discretion of the Parent Board.
|
2.2. |
Annual Performance Bonus. Each fiscal year, the Executive will be eligible to earn an annual
discretionary cash bonus (the “Annual Performance Bonus”) with a target bonus opportunity equal to 72.25% of the Executive’s Base Salary. The actual amount of the Annual Performance Bonus shall be
subject to an assessment, in the sole discretion of the Parent Board (and/or an applicable committee thereof) of the Executive’s individual performance and overall Company performance. In order to earn and receive the Annual Performance
Bonus, the Executive must remain employed by the Company through and including the date on which the Annual Performance Bonus is paid. The Annual Performance Bonus, if any, will be paid no later than thirty (30) days following the end
of the Company’s fiscal year (March 31), or by April 30, subject to Executive’s continued employment through the payment date. The Annual Performance Bonus payable, if any, shall be prorated for the initial year of employment (on the
basis of a three hundred sixty-five (365)-day year) and shall be prorated if the Company’s review or assessment of the Executive’s performance covers a period that is less than a full fiscal year.
|
2.3. |
Equity Incentive Grants.
|
(a) |
Subject to the terms of Parent’s 2019 Equity Incentive Plan (as may be amended from time to time, the “Plan”) and approval of the grant by the Parent Board, the
Executive will be granted an award of options to purchase 1,300,000 shares of common stock of the Parent (the “Unit Option Award”). The Unit Option Award will be granted on or about July 28, 2025,
with an exercise price equal to the fair market value of Parent’s common stock on such date of grant, as set forth in the Plan. The Unit Option Award will vest over a period of four years, with twenty-five percent (25%) of the Unit Option
Award vesting on the one-year anniversary of the Start Date and the balance of the Unit Option Award vesting in a series of twelve (12) successive equal quarterly installments measured from the first anniversary of the Start Date,
provided Executive is employed by the Company on each vesting date, except as otherwise set forth herein.
|
(b) |
Subject to the terms of the Plan and approval of the grant by the Parent Board, the Executive will be granted an award of options to purchase a number of shares common stock of the Parent (the “Dollar Option Award” and, together with the Unit Option Award, the “Option Awards”) determined by dividing $2,250,000 by the 30-day trailing average price of the
Company’s common stock on the Nasdaq Global Select Market as of the date of grant and rounding down to the nearest whole share. The Dollar Option Award will be granted on or about July 28, 2025, with an exercise price equal to the fair
market value of Parent’s common stock on such date of grant, as set forth in the Plan. The Dollar Option Award will vest over a period of four years, with twenty-five percent (25%) of the Dollar Option Award vesting on the one-year
anniversary of the Start Date and the balance of the Dollar Option Award vesting in a series of twelve (12) successive equal quarterly installments measured from the first anniversary of the Start Date, provided Executive is employed by
the Company on each vesting date, except as otherwise set forth herein.
|
(c) |
If a Change in Control (as defined in the Plan) occurs during the term of Executive’s employment with the Company, all then-outstanding and unvested Option Awards shall immediately vest in full and become
exercisable upon such Change in Control (the “Equity Acceleration Benefit”).
|
(d) |
Notwithstanding anything to the contrary herein, following each vesting event described in the this Section 2.3, the shares of common stock underlying such portion of the Unit Option Award will be subject
to a further two (2) year holding period starting from the applicable vesting event before the shares of common stock underlying such portion of the Unit Option Award may be sold, unless the Executive acquires the prior written consent of
the Parent Board (e.g., the shares of common stock underlying the 25% of the Unit Option Award that vests on the one-year anniversary of the Start Date must be held until the three-year anniversary of the Start Date before such shares may
be sold), provided that Executive shall be permitted to sell such shares pursuant to any sell-to-cover transaction or dispose shares withheld to satisfy any applicable tax withholding obligations due in respect of the exercise of the
Option Awards. In all cases, the Option Awards will be subject to the terms and conditions contained in the Plan and the applicable equity incentive agreement issued in connection with the grants, which will incorporate the terms set
forth in this Section (the “Option Equity Incentive Agreements”) between the Executive and the Parent. In the event of a conflict between the terms of this Agreement and the terms of the Option
Equity Incentive Agreements, except in connection with the vesting schedule and acceleration rights set forth herein, the terms of the Option Equity Incentive Agreements shall prevail.
|
(e) |
Subject to the terms of the Plan and approval of the grant by the Parent Board, the Executive will be granted an award of 1,475,000 capped value appreciation rights (“CVARs”)
of the Parent on or about July 28, 2025. The terms of the CVARs will be set out in CVAR award grant notice, to be entered into by and between the Parent and the Executive.
|
2.4. |
Benefits and Insurance. The Executive shall, in accordance with Company policy and the terms of the
applicable plan documents, be eligible to participate in benefits under any benefit plan or arrangement that may be in effect from time to time and made available to similarly situated Company executives (including, but not limited to,
being named as an officer for purposes of the Company’s Directors & Officers insurance policy), it being understood that the Executive shall not participate in the same or similar health benefits and savings or spending accounts at
both RSI and the Company simultaneously. The Company reserves the right in its sole discretion to modify, add or eliminate benefits at any time. All benefits shall be subject to the terms and conditions of the applicable plan documents,
which may be amended or terminated at any time. The Executive shall be entitled to vacation each year, in addition to sick leave and observed holidays in accordance with the policies and practices of the Company. Vacation may be taken
at such times and intervals as the Executive shall determine, subject to the business needs of the Company.
|
2.5. |
Expense Reimbursements. The Company will reimburse the Executive for all reasonable and documented
business expenses that the Executive incurs in conducting the Executive’s duties hereunder, pursuant to the Company’s usual expense reimbursement policies.
|
3. |
AT-WILL EMPLOYMENT.
|
4. |
PROPRIETARY INFORMATION OBLIGATIONS; COOPERATION.
|
4.1. |
NDIA. As a condition of employment, the Executive agrees to execute and abide by the Company’s
Employee Non-Disclosure, Invention Assignment and Restrictive Covenant Agreement (“NDIA”).
|
4.2. |
Cooperation. During the Executive’s employment with the Company and thereafter, Executive shall
cooperate in good faith with the Company in any internal investigation or any administrative, regulatory or judicial proceeding as reasonably requested by the Company (including, without limitation, Executive being available to the
Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent
information and turning over to the Company all relevant documents which are or may come into Executive’s possession, all at times and on schedules that are reasonably consistent with Executive’s other permitted activities and
commitments). The Company will reimburse Executive for any reasonable, out-of-pocket travel, lodging and meal expenses incurred in connection with Executive’s performance of obligations pursuant to this Section 4.2 for which Executive
has obtained prior written approval from the Company.
|
5. |
TERMINATION OF EMPLOYMENT.
|
5.1. |
Termination Generally. Upon termination of Executive’s employment for any reason, the Company shall
pay the Executive any earned but unpaid Base Salary, unused vacation accrued (if applicable) and any other vested amount or benefit, if any, that is expressly provided for pursuant to the terms of any employee benefit plan or program in
which Executive participates (collectively, the “Accrued Obligations”) through the date of termination, at the rates then in effect, less standard deductions and withholdings.
|
5.2. |
Termination of IMVT Employment for Cause. In the event the Executive’s employment with the Company is
terminated for Cause (as defined below), the Executive shall be deemed to be immediately terminated from all other positions with the Parent and its subsidiaries, including service on the Parent Board. The Company shall thereafter have
no further obligations to the Executive, except for the Accrued Obligations or as otherwise required by law.
|
5.3. |
Termination of RSI Employment for Cause. In the event the Executive’s employment with RSI is
terminated for Cause (as such term is defined in the RSI Employment Agreement), Executive shall be deemed to be immediately terminated from all positions held at the Parent and its subsidiaries, including service on the Parent Board,
for Cause under this Agreement (and the terms of Section 5.2 shall thereupon apply).
|
5.4. |
Termination of IMVT Employment by the Company without Cause or Resignation by the Executive for Good Reason.
|
(a) |
In the event the Company terminates the Executive’s employment without Cause or Executive resigns for Good Reason (as defined below), the Executive shall be entitled to receive, in addition to the Accrued
Obligations: (i) continued payment of the Executive’s then-current Base Salary for a period of twelve (12) months following the termination date, payable in accordance with the Company’s customary payroll practices; (ii) an amount equal
to the Executive’s target Annual Performance Bonus, payable in equal monthly installments over the twelve (12) month period following the termination date in accordance with the Company’s customary payroll practices; and (iii) to the
extent that the Executive is enrolled in the Company’s group health and welfare benefit plans as of immediately prior to the date of termination, monthly reimbursement of the COBRA premiums for continued group health and dental plan
coverage in which the Executive was enrolled as of immediately prior to the termination date, less active employee rates (which will be payable by the Executive), for a period of twelve (12) months following the termination date (or, if
earlier, until the date the Executive becomes eligible to be covered under a subsequent employer’s group health insurance plan (the amounts described in clauses (i) through (iii), collectively, the “Severance
Benefits”); provided that, notwithstanding the foregoing, in the event that each of the Executive and RSI desires that the Executive continue in a position with RSI to be mutually agreed
between Executive and RSI following Executive’s termination of employment from the Company pursuant to this Section 5.4(a), the Executive shall not have any rights or entitlements to the Severance Benefits or any other severance or other
payments under this Agreement, except for the Accrued Obligations, and the Executive’s eligibility for any severance in connection with the Executive’s subsequent termination of employment with RSI shall be governed by the terms and
conditions of the RSI Employment Agreement. For the sake of clarity, the Severance Benefits will only be paid under this Agreement to the extent that the Executive’s employment with the Company terminates in the circumstances described in
this Section 5.4(a) and the Executive does not continue employment with RSI thereafter. The Executive agrees to provide the Company with written notice of the Executive’s eligibility to be covered under a subsequent employer’s group
health insurance plan no later than five (5) business days after the Executive becomes eligible for such coverage.
|
(b) |
Notwithstanding anything to the contrary herein, the Severance Benefits shall be provided to Executive only if (A) Executive has timely executed and delivered to the Company a waiver and general release of
claims, in a form to be provided promptly by the Company following the termination date (the “Release”), (B) Executive has not revoked or breached the provisions of such Release and (C) Executive
has not violated the terms of the NDIA. If the period during which Executive may execute or revoke the Release spans two taxable years of Executive, the Severance Benefits shall in all events be paid to Executive in the second such
taxable year, and any Severance Benefits that otherwise would have been payable during the first taxable year shall be paid in a lump sum in the first calendar month of the second taxable year. Executive acknowledges and agrees that the
Company has no obligation to pay Executive any severance, except as expressly provided herein or as may otherwise be approved by the Company, and only to the extent Executive complies with the express contractual conditions hereof.
|
5.5. |
Definitions. For purposes of this Agreement, the following terms shall have the following meanings:
|
(a) |
“Cause” shall mean Executive’s: (i) conviction of, or plea of guilty or no contest to, any (x) felony or (y) any other crime involving moral turpitude or dishonesty;
(ii) participation in fraud, embezzlement, misappropriation or theft against any member of the Company or its direct or indirect subsidiaries and affiliates (collectively, the “Company Group”);
(iii) material breach of this Agreement or any other agreement between Executive and any member of the Company Group that has not been cured (if curable) within thirty (30) days after receiving written notice of such breach; (iv)
engagement in any conduct or act of gross negligence that causes, or is reasonably likely to cause, material damage to any member of the Company Group monetarily or otherwise (including, with respect to the reputation, business or
business relationships of any member of the Company Group); (v) material failure to comply with the code of conduct or other material policies of any member of the Company Group; (vi) violation of any law, rule or regulation relating in
any way to the business or activities of the Company Group, or any other law, rule or regulation that results in Executive’s arrest, censure or regulatory suspension or disqualification, including, without limitation, the Generic Drug
Enforcement Act of 1992, 21 U.S.C. § 335(a), or any similar legislation applicable in the United States or in any other country where the Company intends to develop its activities; or (vii) willful failure to substantially perform
Executive’s duties hereunder (other than as a result of Disability (as defined below)) that has not been cured (if curable) within thirty (30) days after receiving written notice from the Company.
|
(b) |
“Disability” shall have the meaning assigned to such term in the RSI Employment Agreement.
|
(c) |
“Good Reason” shall mean the occurrence of any of the following events without Executive’s consent: (i) a material reduction in Executive’s Base Salary (provided, however, that if such reduction occurs in connection with a Company-wide decrease in the compensation of similarly situated employees of the Company,
such reduction shall not constitute Good Reason if it is a reduction of a proportionally like percentage affecting all such similarly situated employees not to exceed ten percent (10%)); (ii) a material reduction of Executive’s authority,
duties or responsibilities, as compared to Executive’s authority, duties or responsibilities immediately prior to such reduction; or (iii) a relocation of Executive to a primary office location more than twenty five (25) miles from
Executive’s primary company office location as of the Start Date (provided that Executive being permitted to work remotely shall not constitute Good Reason); provided
that, in each case Executive (A) gives the Company written notice of Executive’s intent to terminate employment for Good Reason within thirty (30) days following the first occurrence of the conditions that Executive believes
constitute Good Reason, (B) the Company fails to remedy such conditions within thirty (30) days following receipt of the written notice from Executive and (C) Executive voluntarily terminates employment within thirty (30) days following
the expiration of such cure period.
|
5.6. |
Effect of Termination. The Executive agrees that should the Executive’s employment with the Company
terminate for any reason, the Executive shall be deemed to have resigned from any and all positions as an officer of the Company and the Parent and any of its subsidiaries. The Executive may continue serving as a director of the Parent
following such termination with the mutual written agreement of Parent and RSL.
|
5.7. |
Section 409A Compliance.
|
(a) |
It is intended that any benefits under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), provided under Treasury Regulations Sections 1.409A-1(b)(4), and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions,
and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A. For purposes of Section 409A (including, without limitation, for purposes of Treasury
Regulations Section 1.409A-2(b)(2)(iii)), the Executive’s right to receive any installment payments under this Agreement (whether severance payments, if any, or otherwise) shall be treated as a right to receive a series of separate
payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. A termination of employment shall not be deemed to have occurred for purposes of any provision of this
Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A and, for purposes of any such
provision of this Agreement, references to a “resignation,” “termination,” “termination of employment” or like terms shall mean separation from service. In no event may Executive, directly or indirectly, designate the calendar year of a
payment. Notwithstanding any provision of this Agreement to the contrary, in no event shall the timing of the Executive’s execution of any release of claims, directly or indirectly, result in the Executive designating the calendar year of
payment of any amounts of deferred compensation subject to Section 409A, and if a payment that is subject to execution of a release of claims could be made in more than one taxable year, payment shall be made in the later taxable year.
The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any compensation under this Agreement constitutes deferred compensation subject to Code Section 409A but does not satisfy
an exemption from, or the conditions of, Code Section 409A.
|
(b) |
Notwithstanding any provision to the contrary in this Agreement, if the Executive is deemed by the Company at the time of a separation from service to be a “specified employee” for purposes of Section
409A(a)(2)(B)(i), and if any payments or benefits that the Executive becomes entitled to under this Agreement on account of such separation from service are deemed to be “deferred compensation,” then to the extent delayed commencement of
any portion of such payments or benefits is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided prior to the earliest
of (i) the expiration of the six (6)-month period measured from the date of separation from service, (ii) the date of the Executive’s death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse
taxation. Upon the first (1st) business day following the expiration of such period, all payments deferred pursuant to this paragraph shall be paid in a lump sum, and any remaining payments due shall be paid as otherwise provided herein.
No interest shall be due on any amounts so deferred.
|
(c) |
With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (i) the right to reimbursement or in-kind benefits shall
not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or
in-kind benefits to be provided, in any other taxable year, and (iii) such payments shall be made on or before the last day of the Executive’s taxable year following the taxable year in which the expense was incurred.
|
5.8. |
Arbitration; Waiver of Jury Trial. If any legally actionable dispute arises under this Agreement, the
RSI Employment Agreement or otherwise which cannot be resolved by mutual discussion between the Parties, then the Company and Executive each agrees to resolve that dispute by binding arbitration pursuant to the terms and conditions of
the Mutual Agreement to Arbitrate Claims (the “Arbitration Agreement”) previously entered into between RSI and Executive, a copy of which is attached as Exhibit A hereto, it being understood that
any reference to the “Company” in the Arbitration Agreement shall be interpreted to cover IMVT Corporation and its applicable subsidiaries and affiliates. The terms of the Arbitration Agreement are incorporated herein by reference and
deemed to be a part of this Agreement. This Section 5.8 (and the Arbitration Agreement) shall survive the termination of Executive’s employment. EACH PARTY EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING
RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.
|
5.9. |
Section 280G. If Executive would be entitled to payments or benefits under this Agreement or under
any other plan, program, agreement or arrangement that would constitute “parachute payments” as defined in Section 280G of the Code and could result in any such payment or benefit being subject to an excise tax under Section 4999 of the
Code, the present value of Executive’s payments and benefits will be reduced by the minimum amount necessary such that the aggregate present value of such payments and benefits do not trigger the excise tax; provided, however, no such
reductions shall be given effect if Executive would be entitled to greater payments and benefits on an after-tax basis (taking into account the excise tax imposed pursuant to Section 4999 of the Code, any tax imposed by any comparable
provision of state law, and any applicable federal, state and local income and employment taxes) than if such reductions were to be implemented. If payments or benefits are to be reduced, any such reduction in payments and/or benefits
shall be made in accordance with Section 409A and shall occur in the manner that results in the greatest economic benefit to the Executive as determined by the Company’s independent accountants. All determinations in applying the
foregoing provisions for purposes of the “golden parachute” rules under Sections 280G and 4999 of the Code will be made by the Company’s independent accountants and shall be final and binding on the parties.
|
6. |
GENERAL PROVISIONS.
|
6.1. |
Representations and Warranties.
|
(a) |
The Executive represents and warrants that the Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this
Agreement, and that the Executive’s execution and performance of this Agreement will not violate or breach any other agreements between the Executive and any other person or entity. The Executive represents and warrants that the Executive
is not subject to any confidentiality or non-competition agreement or any other similar type of restriction that could restrict in any way the Executive’s hiring by the Company and the performance of the Executive’s expected job duties
with the Company.
|
(b) |
The Company and its affiliates do not wish to incorporate any unlicensed or unauthorized material, or otherwise use such material in any way in connection with, its and their respective products and
services. Therefore, the Executive hereby represents, warrants and covenants that the Executive has not and will not disclose to the Company or its affiliates, use in their business, or cause them to use, any information or material which
is a trade secret, or confidential or proprietary information, of a third party, including, but not limited to, any former employer, competitor or client, unless the Company or its affiliates have a right to receive and use such
information or material.
|
(c) |
The Executive represents and warrants that the Executive is not debarred and has not received notice of any action or threat with respect to debarment under the provisions of the Generic Drug Enforcement
Act of 1992, 21 U.S.C. § 335(a) or any similar legislation applicable in the United States or in any other country where the Company intends to develop its activities. The Executive understands and agrees that this Agreement is contingent
on the Executive’s submission of satisfactory proof of identity and legal authorization to work in the United States, as well as verification of auditor independence.
|
6.2. |
Advertising Waiver. The Executive agrees to permit the Company, and persons or other organizations
authorized by the Company, to use, publish and distribute advertising or sales promotional literature concerning business of the Company in which the Executive’s name and/or pictures of the Executive appear. The Executive hereby waives
and releases any claim or right the Executive may otherwise have arising out of such use, publication or distribution.
|
6.3. |
Miscellaneous.
|
(a) |
This Agreement, along with the NDIA, the Mutual Agreement to Arbitrate Claims and any applicable equity awards that have been granted or will be granted pursuant to this Agreement, constitutes the complete,
final and exclusive embodiment of the entire agreement between the Executive and the Company with regard to its subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those
expressly contained herein, and it supersedes any other such promises, warranties or representations.
|
(b) |
This Agreement may not be modified or amended except in a writing signed by both the Executive and a duly authorized officer of the Company or a member of the Board.
|
(c) |
This Agreement will bind the heirs, personal representatives, successors and assigns of both the Executive and the Company, and inure to the benefit of both the Executive and the Company, and to the
Executive’s and the Company’s heirs, successors and assigns, as applicable, except that the duties and responsibilities of the Executive are of a personal nature and shall not be assignable or delegable in whole or in part by the
Executive. The Company may assign its rights, together with its obligations hereunder, in connection with any merger, consolidation, or transfer or other disposition of all or substantially all of its assets, and such rights and
obligations shall inure to, and be binding upon, any successor to the Company or any successor to all or substantially all of the assets of the Company, which successor shall expressly assume such obligations.
|
(d) |
If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question
will be modified so as to be rendered enforceable.
|
(e) |
This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of New York as applied to contracts made and to be performed entirely
within New York.
|
(f) |
Any ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any
successive breach. This Agreement may be executed in counterparts and facsimile signatures will suffice as original signatures.
|
IMVT Corporation
|
|
/s/ Tiago Girao
|
|
Name: Tiago Girao
|
|
Title: Chief Financial Officer
|
|
ACCEPTED AND AGREED:
|
|
/s/ Eric Venker
|
|
Name: Eric Venker
|
IMVT Corporation
|
|
/s/ Tiago Girao
|
|
Tiago Girao
|
|
Title: Chief Financial Officer
|
|
July 28, 2025
|
|
/s/ Eric Venker
|
|
Employee: Eric Venker
|
|
July 28, 2025
|
Participant:
|
[NAME] (the “Participant”)
|
Company:
|
Immunovant, Inc., a Delaware corporation (the “Company”)
|
Plan:
|
Immunovant, Inc. 2019 Equity Incentive Plan (as amended, the “Plan”)
|
Notice:
|
The Participant has been granted an award of Capped Value Appreciation Rights (“CVARs”) in accordance with the terms of this Grant Notice (this “Grant Notice”), the Capped Value Appreciation Right Award Agreement attached hereto as Attachment A (the “CVAR Award Agreement” and, together with this Grant Notice, collectively, this “Agreement”) and the Plan. Unless otherwise defined, capitalized
terms used herein shall have the meanings ascribed to them in the Plan.
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Type of Award:
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A CVAR is an unfunded and unsecured conditional obligation of the Company that represents the right to receive the CVAR Amount (defined below), if any, applicable to the Participant’s award of CVARs, subject to the terms and conditions
of this Agreement and those of the Plan. A CVAR is an Other Stock Award for purposes of the Plan.
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CVARs:
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[#] CVARs
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Grant Date:
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[DATE] (the “Grant Date”)
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Vesting
Commencement Date:
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[DATE] (the “Vesting Commencement Date”)
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Expiration Date:
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[DATE] (the “Expiration Date”)
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Hurdle Price:
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$[●] per share of Common Stock (the “Hurdle Price”)
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Cap Price:
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$[●] per share of Common Stock (the “Cap Price”)
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Knock-in Price:
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$[●] per share of Common Stock (the “Knock-in Price”)
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Vesting:
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The CVARs will vest on the first date that each of (i) the “Service Requirement”, (ii) the “Performance Requirement”
and (iii) the “Knock-in Requirement” have been satisfied (collectively, the “Vesting
Requirements”). The portion of the CVARs that have satisfied all of the Vesting Requirements in accordance with this Agreement as of any relevant date of determination are referred to as the “Vested CVARs” and the date that all of the Vesting Requirements are satisfied with respect to any CVARs is referred to as the “Vesting Date” with
respect to such CVARs.
For purposes of this Agreement, “Continuous Service” shall be as defined in the Plan, and, for the sake of clarity, shall include the Participant’s continued employment or
service with Roivant Sciences Ltd. or one of its subsidiaries.
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Service Requirement:
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The Service Requirement applicable to the CVARs will be satisfied as follows, subject to the Participant’s Continuous Service through each of the dates set forth below (each a “Service
Vesting Date”): [●]
The CVARs that are scheduled to satisfy the Service Requirement on an applicable Service Vesting Date are collectively referred to herein as a “CVAR Tranche”.
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Performance Requirement:
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[●]
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Knock-in Requirement:
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The Knock-in Requirement applicable to any CVAR Tranche will be satisfied if, as of the relevant Service Vesting Date of such CVAR Tranche, the Fair Market Value of a share of Common Stock equals or exceeds the Knock-in Price. For the
sake of clarity, the Knock-in Requirement will apply on a CVAR Tranche-by-CVAR Tranche basis (and satisfaction of the Knock-in Requirement by one applicable CVAR Tranche (i.e., by virtue of the Fair Market Value of a share of Common
Stock being equal to or exceeding the Knock-in Price as of the Service Vesting Date applicable to such CVAR Tranche or a subsequent Knock-in Measurement Date) shall not constitute satisfaction of the Knock-in Requirement for any other
CVAR Tranche).
If the Fair Market Value of a share of Common Stock does not equal or exceed the Knock-in Price as of the relevant Service Vesting Date of a CVAR Tranche, then the CVAR Tranche that has otherwise satisfied the Service Requirement as of
such Service Vesting Date will be deemed to remain outstanding and will be “re-tested” and eligible to become Vested CVARs on a subsequent annual “Knock-in Measurement Date” (as defined below), subject to (i) the Participant’s Continuous
Service through the applicable Knock-in Measurement Date on which the Knock-in Requirement is satisfied with respect to such CVAR Tranche and (ii) satisfaction of the Performance Requirement. For purposes of this Agreement, a “Knock-in Measurement Date” means [DATE]. For the sake of clarity, once the Knock-in Requirement with respect to any CVAR Tranche has been satisfied as of the Service Vesting Date
applicable to a CVAR Tranche or a subsequent Knock-in Measurement Date, the Knock-in Requirement shall not be required to be subsequently satisfied. With respect to any CVAR Tranche that has not satisfied the Knock-in Requirement (i.e.,
by virtue of the Fair Market Value of a share of Common Stock equal or exceeding the Knock-in Price as of the Service Vesting Date applicable to such CVAR Tranche or a subsequent Knock-in Measurement Date) on or prior to the Expiration
Date, such CVARs (the “Unsatisfied CVARs”) will nonetheless be eligible to become Vested CVARs as of the Expiration Date, subject to (i) the Participant’s Continuous Service
through the Expiration Date and (ii) satisfaction of the Performance Requirement.
Notwithstanding anything to the contrary herein, in the event of a Change in Control prior to the satisfaction of the Knock-in Requirement, the Knock-in Requirement shall be deemed to have been fully satisfied immediately upon the
occurrence of such Change in Control (and, for the avoidance of doubt, the CVARs shall otherwise remain outstanding and eligible to vest based on achievement of the other applicable Vesting Requirements).
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CVAR Amount and
Payment Terms:
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Subject to the satisfaction of the Vesting Requirements, as of each applicable Payment Date (as defined below), the Participant will be entitled to receive (subject to the satisfaction of Tax Withholding Obligations in accordance with
the CVAR Award Agreement) an amount equal to the product of (i) the number of CVARs held by the Participant that became Vested CVARs on the applicable Vesting Date multiplied by (ii) the excess
(if any) of (A) the Fair Market Value of a share of Common Stock on the applicable Vesting Date (up to the Cap Price) over (B) the Hurdle Price (the “CVAR Amount”), and the
Vested CVARs will be cancelled in exchange for payment of the CVAR Amount. For the avoidance of doubt, (i) in no event will the Fair Market Value of a share of Common Stock used to determine the CVAR Amount be greater than the Cap Price
and (ii) to the extent applicable, with respect to any Unsatisfied CVARs that become Vested CVARs as of [DATE], in the event the Fair Market Value of a Share of Common Stock as of [DATE] is less than the Hurdle Price, then such
Unsatisfied CVARs shall not constitute Vested CVARs and will be immediately forfeited and cancelled without the payment of any consideration therefor.
The CVAR Amount payable in respect of the applicable Vested CVARs will be settled and delivered within 30 days following the applicable Vesting Date of such Vested CVARs (such actual date of payment, the “Payment Date”).
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Form of Payment:
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The CVAR Amount payable in respect of the Vested CVARs will be paid to the Participant in the form of shares of Common Stock (such shares of Common Stock, the “CVAR Shares”),
with the number of such CVAR Shares to be determined by dividing (i) the applicable CVAR Amount by (ii) the Fair Market Value of a share of Common Stock on the applicable Payment Date (with any fractional CVAR Shares paid to the
Participant in the form of cash).
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Additional Terms/
Acknowledgements:
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The Participant acknowledges receipt of, and understands and agrees to, this Agreement and the Plan. The Participant acknowledges and agrees that this Agreement may not be modified, amended or revised, except as provided in the Plan.
By accepting this award of CVARs, the Participant consents to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third
party designated by the Company.
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IMMUNOVANT, INC.
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PARTICIPANT
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Signature:
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Signature:
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Print Name:
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Print Name:
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Title:
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Address:
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(a) |
The CVARs shall vest and become payable as set forth in the Grant Notice.
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(b) |
Upon the termination of the Participant’s Continuous Service for any reason (other than for Cause), (i) any CVARs that have become Vested CVARs prior to the date of such termination of Continuous Service (the “Termination Date”) which have not yet been settled and cancelled, will be settled and cancelled on the applicable Payment Date in exchange for the applicable CVAR Amount in accordance with the Grant
Notice, and (ii) any CVARs that have not become Vested CVARs will be automatically forfeited and cancelled without the payment of any consideration to the Participant, and the Participant shall have no further rights with respect to such
CVARs.
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(c) |
Notwithstanding anything to the contrary in this Agreement, in the event that (i) the Participant’s Continuous Service is terminated for Cause or (ii) the Performance Requirement is not satisfied, then, in each case all of the
Participant’s CVARs shall be automatically forfeited without the payment of any consideration to the Participant, and the Participant shall have no further rights with respect to such CVARs.
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(a) |
You acknowledge that, regardless of any action taken by the Company or any Affiliate, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, or any other tax of any
kind related to the CVARs and legally applicable to you (“Tax-Related Items”) is and remains your responsibility (or that
of your beneficiary). You further acknowledge that the Company (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the CVARs, including, but not limited to, the
grant, vesting or settlement of the CVARs or the subsequent sale of shares of Common Stock acquired upon settlement of the CVARs and (ii) does not commit to and is under no obligation to structure
the terms of the grant or any aspect of the CVARs to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result.
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(b) |
Unless otherwise determined by the Committee, upon the vesting and/or settlement of the CVARs (or as of any other date on which the value of any CVARs otherwise become includible in your gross income for
tax purposes) (the “Tax Withholding Date”), you shall be required to pay to the Company, and the Company shall have the
right to deduct from any compensation paid to you pursuant to the CVARs, the amount of any applicable federal, state, local and foreign Tax-Related Items that the Company determines must be withheld with respect to the CVARs (the “Tax Withholding Obligations”). By execution of this Agreement, you hereby consent to, and authorize the Company to, on your behalf,
instruct a registered broker chosen by the Company, at a time when you are not in possession of material nonpublic information, to sell on or as soon as administratively practicable following the applicable Tax Withholding Date, such
number of shares of Common Stock (rounded up to the next whole number) as the Company deems necessary to satisfy (i) the Tax Withholding Obligations and (ii) all applicable fees and commissions due
to, or required to be collected by, the broker (the “Broker Fees”), and the broker shall (A) be required to directly remit
to the Company the portion of the cash proceeds from such sale necessary in order for the Company to satisfy the Tax Withholding Obligations and (B) retain the portion of the cash proceeds from such sale required to cover the Broker
Fees relating directly to such sale (the “Sell-to-Cover Method”). Any excess Tax Withholding Obligations and Broker Fees
not satisfied by the Sell-to-Cover Method as a result of insufficient proceeds from the sales pursuant thereto shall be automatically satisfied by the Company withholding such additional amounts through payroll necessary to satisfy any
such remaining Tax Withholding Obligations and Broker Fees. To the extent the proceeds of such sales pursuant to the Sell-to-Cover Method exceed the Tax Withholding Obligations and the associated Broker Fees, the Company agrees to
remit, or to cause the Broker to remit, to you such excess cash (without interest) as soon as administratively practicable thereafter. You hereby agree and acknowledge that the Company and the broker are under no obligation to arrange
for the sale of shares of Common Stock at any particular price under the Sell-to-Cover Method and that the broker may affect sales as provided hereunder in one or more sales and that the average
price for executions resulting from bunched orders may be assigned to your account. Your further agree and acknowledge that you will be responsible for all brokerage fees and other costs of sale associated with the Sell-to-Cover
Method, and you agree to indemnify and hold the Company and the broker harmless from any losses, costs, damages, or expenses relating to any such sale. In connection with the Sell-to-Cover Method, you shall execute any such documents
requested by the broker or the Company in order to effectuate the Sell-to-Cover Method and payment of the Tax Withholding Obligations, and you agree and acknowledge that the Sell-to-Cover Method shall be subject to additional terms,
conditions and documentation determined to be necessary or appropriate by the Company or the applicable broker in furtherance of this Section 11(b). You acknowledge that this Section 11(b) (and the Sell-to-Cover Method contemplated
hereby) is intended to comply with Section 10b5-1(c)(1) under the Exchange Act and shall be interpreted to comply with the requirements of Rule 10b5-1(c) under the Exchange Act.
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(c) |
Notwithstanding anything to the contrary herein, the Company may, in its discretion, permit or require you to satisfy the Tax Withholding Obligations, in whole or in part, through a method other than the
Sell-to-Cover Method described in Section 5(b), including by (i) causing you to tender a cash payment sufficient to satisfy the Tax Withholding Obligations, (ii) withholding from payroll or from any amounts otherwise payable to you by
the Company or any Affiliate in an amount sufficient to satisfy the Tax Withholding Obligations or (iii) by such other method as may be permitted under the Plan or as may be acceptable to the Board.
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(a) |
The CVARs and the obligation of the Company to deliver any shares of Common Stock or cash hereunder shall be subject in all respects to (i) all applicable federal and state laws, rules and regulations and (ii) any registration,
qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Committee shall, in its discretion, determine to be necessary or applicable. Moreover, the Company shall not deliver any
certificates for shares of Common Stock to the Participant or any other person pursuant to this Agreement if doing so would be contrary to applicable law. If at any time the Company determines, in its discretion, that the listing,
registration or qualification of shares of Common Stock upon any national securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable, the Company shall
not be required to deliver any certificates for shares of Common Stock to the Participant or any other person pursuant to this Agreement unless and until such listing, registration, qualification, consent or approval has been effected or
obtained, or otherwise provided for, free of any conditions not acceptable to the Company.
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(b) |
If at any time the shares of Common Stock are not registered under the Securities Act, and/or there is no current prospectus in effect under the Securities Act with respect to the shares of Common Stock, the Participant shall execute,
prior to the delivery of any shares of Common Stock to the Participant by the Company pursuant to this Agreement, an agreement (in such form as the Company may specify) in which the Participant represents and warrants that the Participant
is acquiring the shares of Common Stock acquired under this Agreement for the Participant's own account, for investment only and not with a view to the resale or distribution thereof, and represents and agrees that any subsequent offer
for sale or distribution of any kind of such shares of Common Stock shall be made only pursuant to either (i) a registration statement on an appropriate form under the Securities Act, which registration statement has become effective and
is current with regard to the shares of Common Stock being offered or sold; or (ii) a specific exemption from the registration requirements of the Securities Act, but in claiming such exemption, the Participant shall, prior to any offer
for sale of such shares of Common Stock, obtain a prior favorable written opinion, in form and substance satisfactory to the Company, from counsel for or approved by the Company, as to the applicability of such exemption thereto.
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(c) |
The Participant’s CVARs and any obligation of the Company to deliver the underlying shares of Common Stock, if any, upon settlement of the CVARs shall be subject in all respects to (i) all applicable federal and state laws, rules and
regulations, (ii) any regulation, qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Board shall, in its sole discretion, determine to be necessary or applicable and (iii) the
terms of any Shareholders Agreement entered into by and among the Company and each of the shareholders of the Company that is a party thereto, as may be amended or in effect from time to time (the “Shareholders Agreement”). Moreover, the CVARs may not be settled if its settlement, or the receipt of shares of Common Stock pursuant thereto, would be contrary to applicable law. Any shares of Common Stock
received upon any settlement of the CVARs shall be held subject to all of the terms and conditions of the Shareholders Agreement. The Participant hereby agrees to execute and become a party to the Shareholders Agreement as a condition to
the grant of the CVARs and be subject to the rights and obligations thereunder, and the Company may require the Participant to execute a joinder to the Shareholders Agreement in connection with the settlement of the CVARs for shares of
Common Stock.
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Special Equity Award Opportunity Letter
Eric Venker
President and Chief Operating Officer
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![]() |
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Jun. 30, 2025 |
Mar. 31, 2025 |
---|---|---|
Condensed Consolidated Balance Sheets [Abstract] | ||
Available-for-sale marketable securities (in Dollars) | $ 1,803,035 | |
Common stock, par value (in Dollars per share) | $ 0.0000000341740141 | $ 0.0000000341740141 |
Common stock, shares authorized (in Shares) | 7,000,000,000 | 7,000,000,000 |
Common stock, shares issued (in Shares) | 682,229,832 | 695,938,323 |
Common stock, shares outstanding (in Shares) | 682,229,832 | 695,938,323 |
Condensed Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Research and Development Expense [Member] | ||
Share-based compensation | $ 11,099 | $ 10,532 |
General and Administrative Expense [Member] | ||
Share-based compensation | $ 71,079 | $ 36,841 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net (loss) income | $ (273,911) | $ 57,490 |
Other comprehensive income (loss): | ||
Change in fair value of debt due to change in subsidiary credit risk | 0 | (10,600) |
Unrealized gains on available-for-sale securities | 470 | 0 |
Foreign currency translation adjustment | 7,739 | (3,232) |
Total other comprehensive income (loss) | 8,209 | (13,832) |
Comprehensive (loss) income | (265,702) | 43,658 |
Comprehensive loss attributable to noncontrolling interests | (50,046) | (37,774) |
Comprehensive (loss) income attributable to Roivant Sciences Ltd. | $ (215,656) | $ 81,432 |
Description of Business and Liquidity |
3 Months Ended |
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Jun. 30, 2025 | |
Description of Business and Liquidity [Abstract] | |
Description of Business and Liquidity | Note 1—Description of Business and Liquidity
(A) Description of Business
Roivant Sciences Ltd. (inclusive of its consolidated subsidiaries, the “Company” or “RSL”) aims to improve the lives of patients by accelerating the development and commercialization of medicines that
matter. The Company does this by creating nimble subsidiaries or “Vants” to develop and commercialize its medicines and technologies. Beyond therapeutics, the Company also incubates discovery-stage companies and health technology startups
complementary to its biopharmaceutical business. The Company was founded on April 7, 2014 as a Bermuda exempted limited company.
The Company’s subsidiaries are wholly owned subsidiaries and majority-owned or controlled subsidiaries. Refer to Note 4, “Equity Method Investments” for further discussion of the Company’s investments
in unconsolidated entities.
(B) Liquidity
Historically, the Company has incurred significant operating losses and negative cash flows from operations since its inception. In December 2023, the Company sold its entire equity interest in its majority-owned subsidiary Telavant Holdings, Inc. (“Telavant”). At closing, the Company received approximately $5.2 billion in cash. As of June 30, 2025, the Company had cash, cash equivalents, and marketable securities of approximately $4.5 billion and its accumulated deficit was $315.6 million. For the three months ended June 30, 2025 and 2024, the Company incurred net losses from continuing operations of $273.9 million and $31.6 million, respectively. The Company has historically financed its operations primarily through the sale of equity securities, sale of subsidiary interests, debt financings and revenue generated from licensing and collaboration arrangements.
The Company is subject to risks common to companies in the biopharmaceutical industry including, but not limited to, uncertainties related to commercialization of products, regulatory approvals to
market its product candidates, dependence on key products, dependence on third-party service providers, such as contract research organizations, and protection of intellectual property rights. Management expects to incur additional losses in the
future to fund its operations and conduct product research and development and may require additional capital to fully implement its business plan.
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Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies
(A) Basis of Presentation and Principles of Consolidation
The Company’s fiscal year ends on March 31, and its fiscal quarters end on June 30, September 30, and December 31.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim
financial information and follow the requirements of the United States Securities and Exchange Commission (“SEC”) for interim financial reporting. Accordingly, these unaudited condensed consolidated financial statements do not include all of the
information and disclosures required by U.S. GAAP for complete financial statements as certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The unaudited condensed consolidated
financial statements have been prepared on the same basis as the audited consolidated financial statements.
These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual
Report on Form 10-K for the fiscal year ended March 31, 2025 filed with the SEC. The unaudited condensed consolidated balance sheet at March 31, 2025 has been
derived from the audited consolidated financial statements at that date. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, that are
considered necessary to present fairly the financial position of the Company and its results of operations and cash flows for the interim periods presented. Operating results for the three months ended June 30,
2025 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2026, for any other interim period, or for any other future year.
Any references in these notes to applicable accounting guidance are meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (‘‘ASC’’) and Accounting Standards
Updates (‘‘ASU’’) of the Financial Accounting Standards Board (‘‘FASB’’). The unaudited condensed consolidated financial statements include the accounts of RSL and the subsidiaries in which it has a controlling financial interest, most often
through a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation. For consolidated entities where the Company owns or is exposed to less than 100% of the economics, the Company records net loss attributable to noncontrolling interests in its unaudited condensed consolidated statements of operations equal to the noncontrolling interest’s proportionate share of the respective operations. The Company presents noncontrolling interests as a component of shareholders’ equity on its unaudited condensed consolidated balance sheets.
The Company accounts for changes in its ownership interest in its subsidiaries while control is retained as equity transactions. The carrying amount of the noncontrolling interest is adjusted to
reflect the change in the ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted is recognized within shareholders’ equity
attributable to RSL.
In September 2024, the Company’s subsidiary, Dermavant Sciences Ltd. (“Dermavant”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Organon & Co. (“Organon”), Organon
Bermuda Ltd., an indirect wholly owned subsidiary of Organon (“Merger Sub”), and the Company, solely in its capacity as the representative of the securityholders of Dermavant. Organon’s acquisition of Dermavant (the “Dermavant Transaction”) was
completed in October 2024 and the Company determined the acquisition met the discontinued operations accounting criteria. As the Dermavant Transaction closed in October 2024, no Dermavant assets or liabilities were recognized on the balance sheet
as of March 31, 2025 or June 30, 2025. Accordingly, the Company classified the results of Dermavant as discontinued operations in its condensed consolidated statements of operations for the three months ended June 30, 2024. The cash flows related
to discontinued operations have not been segregated and are included in the condensed consolidated statements of cash flows. The discussions in these notes to the condensed consolidated financial statements relate solely to the Company’s continuing
operations, unless otherwise noted. For further information on the discontinued operations related to Dermavant, refer to Note 6, “Discontinued Operations.”
(B) Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying
notes. The Company regularly evaluates estimates and assumptions related to assets, liabilities, costs, expenses, contingent liabilities, share-based compensation and research and development costs. The Company bases its estimates and assumptions
on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results could differ from those estimates.
(C) Concentrations
Financial instruments that potentially subject the Company to concentration of credit risk include cash, cash equivalents, and marketable securities. The Company maintains cash deposits, cash
equivalents, and marketable securities in highly-rated, federally-insured financial institutions in excess of federally insured limits. The Company has established guidelines relative to diversification and maturities to maintain safety and
liquidity. The Company has not experienced any credit losses related to these financial instruments and does not believe that it is exposed to any significant credit risk related to these instruments.
The Company has long-lived assets in different geographic locations. As of June 30, 2025 and March 31, 2025, a
majority of the Company’s long-lived assets were located in the United States (‘‘U.S.’’).
(D) Segment Reporting
Operating segments are defined as components of an entity about which separate, discrete information is available for evaluation by the chief operating decision maker in deciding how to allocate
resources and in assessing performance. The Company’s chief operating decision maker views the operations and manages the business in a single operating and reportable segment focused on the discovery, development and commercialization of medicines
and technologies. The accounting policies of the segment are the same as those described in this Note 2, “Summary of Significant Accounting Policies.” See Note 15, “Segment Information” for further detail.
(E) Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents include cash deposits in banks and all highly liquid investments that are readily convertible to cash. The Company considers all highly liquid investments purchased with
original maturities of three months or less to be cash equivalents. Cash equivalents consist of amounts invested in money market funds and United States (“U.S.”) Treasury securities.
Cash as reported in the accompanying condensed consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as presented on the accompanying condensed consolidated balance sheets as follows (in thousands):
(F) Marketable Securities
The Company considers all highly liquid investments in securities with original maturities of greater than three months at the time of purchase to be marketable securities. Marketable securities
consist of amounts invested in U.S. Treasury securities. The Company’s marketable securities are classified as available-for-sale or held-to-maturity and are carried at fair value or amortized cost, respectively. Unrealized holding gains and
losses, net of income taxes, on available-for-sale debt securities are reflected as a separate component of stockholders’ equity until realized. The cost of marketable securities sold and the amount reclassified out of accumulated other
comprehensive income into earnings is determined using the specific identification method. Interest income is recorded as earned within “Interest income” in the condensed consolidated statements of operations.
(G) Contingencies
The Company may be, from time to time, a party to various disputes and claims arising from normal business activities. The Company continually assesses any litigation or other claims it may confront to
determine if an unfavorable outcome would lead to a probable loss or reasonably possible loss which could be estimated. The Company accrues for all contingencies at the earliest date at which the Company deems it probable that a liability has been
incurred and the amount of such liability can be reasonably estimated. If the estimate of a probable loss is a range and no amount within the range is more likely than another, the Company accrues the minimum of the range. In the cases where the
Company believes that a reasonably possible loss exists, the Company discloses the facts and circumstances of the contingent loss, including an estimable range, if possible.
(H) Investments
Investments in equity securities for which the Company does not have control or significant influence may be accounted for using (i) the fair value option, if elected, (ii) fair value through earnings,
if fair value is readily determinable or (iii) for equity investments without readily determinable fair values, the measurement alternative to measure at cost adjusted for any impairment and observable price changes, as applicable. The election to
use the measurement alternative is made for each eligible investment.
The Company has elected the fair value option to account for certain investments over which the Company has significant influence. The Company believes the fair value option best reflects the
underlying economics of the investment. See Note 4, “Equity Method Investments.”
(I) Fair Value Measurements
The Company utilizes fair value measurement guidance prescribed by U.S. GAAP to value its financial instruments. The guidance establishes a fair value hierarchy for financial instruments measured at
fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability
based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed
based on the best information available in the circumstances. Fair value is defined as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the reporting date. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a three-tier fair value hierarchy that distinguishes among the following:
To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of
judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair
value measurement.
The Company’s financial instruments include shares of common stock of Arbutus Biopharma Corporation (“Arbutus”) and Class A units of Heracles Parent, L.L.C. (“Datavant”). The Company’s financial
instruments also include liability instruments issued, including the earn-out shares liabilities issued in connection with the Company’s business combination (the “Business Combination”) with Montes Archimedes Acquisition Corp. (“MAAC”) (as
discussed in Note 12, “Earn-Out Shares”); its investments in other entities; cash; cash equivalents, consisting of money market funds; marketable securities, consisting of U.S. Treasury securities; and accounts payable.
The shares of Arbutus common stock and investments in common stock with a readily determinable fair value are classified as Level 1, and their fair value is determined based upon quoted market prices
in an active market. The Class A units of Datavant and liability instruments issued are classified as Level 3 within the fair value hierarchy as the assumptions and estimates used in the valuations are unobservable in the market. Cash and accounts
payable are stated at their respective historical carrying amounts, which approximate fair value due to their short-term nature. Money market funds are included in Level 1 of the fair value hierarchy and are valued at the closing price reported by
an actively traded exchange. Marketable securities are classified as available-for-sale or held-to-maturity and are carried at fair value or amortized cost, respectively.
(J) Share-Based Compensation
Share-based awards to employees, directors, and consultants include stock options, restricted stock units (“RSUs”), performance options, performance restricted stock units (“PSUs”) and capped value
appreciation rights (“CVARs”).
The Company measures the fair value of its stock options that only have service vesting requirements or performance-based options without market conditions using the Black-Scholes option pricing model.
Certain assumptions need to be made with respect to utilizing the Black-Scholes option pricing model, including the expected life of the award, volatility of the underlying shares, the risk-free interest rate and the fair value of the Company’s
shares of common stock. Since the Company has limited option exercise history, it has generally elected to estimate the expected life of an award based upon the “simplified method” with the continued use of this method extended until such time the
Company has sufficient exercise history. In prior fiscal years, because the Company did not have sufficient trading history to rely on the volatility of its common stock, volatility was estimated by taking the average historical price volatility
for comparable publicly traded peer companies. Beginning on April 1, 2025, the Company began using a blend of its historical and implied volatility to estimate the expected share price volatility assumption. Due
to changes in the Company’s capital position, the Company believes this methodology better reflects its expected future volatility. The risk-free interest rate is based on the rates paid on securities issued by the U.S. Treasury with a
term approximating the expected life of the equity award. The Company accounts for pre-vesting award forfeitures when they occur. As RSL’s common shares are publicly traded, the Company determines the fair value of each common share underlying
share-based awards based on the closing price of its common shares as reported by Nasdaq on the date of grant. For privately held Vants, the fair value of the shares of common stock underlying share-based awards on each grant date is estimated,
given the absence of a public trading market.
(K) Foreign Currency
The Company’s functional and reporting currency is the U.S. dollar. For the Company’s subsidiaries whose functional currency is other than the U.S. dollar, assets and liabilities are translated into
U.S. dollars at the exchange rates in effect at the balance sheet date, while their revenue and expenses are translated at the average exchange rates for the reporting period. The cumulative foreign currency translation adjustments are recorded as
a component of “Accumulated other comprehensive income (loss)” in the accompanying condensed consolidated statement of shareholders’ equity.
Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in “Other expense, net” in the accompanying condensed consolidated statements of operations. For the three months ended June 30, 2025, foreign currency transaction losses were $6.8 million. Foreign currency transaction losses were immaterial for the three months ended June 30, 2024.
(L) Significant Accounting Policies
There were no significant changes to the Company’s significant accounting policies from those disclosed in the Company’s Form 10-K for the year ended March 31, 2025. (M) Recently Adopted Accounting Pronouncements
In November 2023, the FASB issued 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” which updates reportable segment disclosure requirements, primarily through
enhanced disclosures about significant segment expenses. The Company adopted the guidance in the Company’s Form 10-K for the year ended March 31, 2025 and has made the required disclosures in this Form 10-Q.
(N) Recently Issued Accounting Pronouncements
From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that the Company adopts as of the specified effective date.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which includes updates to the income tax disclosures related to
the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024 and are applicable to the Company’s fiscal year beginning April 1, 2025, with early
adoption permitted. The amendments should be applied prospectively, however retrospective application is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which
requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. The amendments are effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years
beginning after December 15, 2027. This ASU is applicable to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2028, and subsequent interim periods, with early adoption permitted. The amendments can be adopted either (i)
prospectively to financial statements issued for reporting periods after the effective date of this ASU or (ii) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of
adopting this ASU on its consolidated financial statements.
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Cash, Cash Equivalents, and Marketable Securities |
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Cash, Cash Equivalents, and Marketable Securities | Note 3—Cash, Cash Equivalents and Marketable Securities
Cash, cash equivalents, and marketable securities consisted of the following (in thousands):
The following table summarizes the unrealized positions for the Company’s marketable securities (in thousands):
The Company classified its marketable securities as Level 2 measurements within the fair value hierarchy. As of June 30, 2025, the contractual maturities of
all marketable securities were less than 12 months.
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Equity Method Investments |
3 Months Ended |
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Jun. 30, 2025 | |
Equity Method Investments [Abstract] | |
Equity Method Investments | Note 4—Equity Method Investments
The Company maintains equity method investments in certain entities. As of June 30, 2025 and March 31, 2025, the
most significant of these were the Company’s investments in Arbutus and Datavant, which are accounted for using the fair value option.
The Company determined that it does not control these entities and as a result does not consolidate these entities. Due to the Company’s significant influence over operating and financial policies of
these entities, the entities are considered related parties of the Company.
Investment in Arbutus
The Company holds an investment in Arbutus in the form of 38,847,462 common shares of Arbutus. As of June 30, 2025, RSL held approximately 20% of the issued and outstanding shares of Arbutus.
At June 30, 2025 and March 31, 2025, the aggregate fair value of the Company’s investment in Arbutus was $120.0 million and $135.6 million, respectively with the Company recognizing an unrealized loss of $15.5 million and unrealized gain of $19.8 million on its investment in Arbutus in the accompanying condensed consolidated statements of operations for the three months ended June 30, 2025 and 2024, respectively. The fair value of the Company’s investment was determined using the closing price of Arbutus’s common stock on June 30, 2025 and March 31, 2025 of $3.09 and $3.49, respectively.
Investment in Datavant
The Company holds an investment in Class A units of Datavant. As of June 30, 2025, the Company’s minority equity interest represented approximately 9% of the outstanding Class A units in Datavant. Datavant’s capital structure includes several classes of preferred units that, among other features, have liquidation preferences and conversion rights. Upon conversion of such preferred units into Class A units, the Company’s ownership interest would be diluted.
As of June 30, 2025 and March 31, 2025, the fair value of the Company’s investment was $163.8 million and $167.4 million, respectively with the Company recognizing unrealized losses of $3.6 million and $4.6 million on its investment in Datavant in the accompanying condensed consolidated statements of operations for the three months ended June 30, 2025 and 2024, respectively.
The fair value of the Company’s investment was determined using valuation models that incorporate significant unobservable inputs and is classified as a Level 3 measurement within the fair value
hierarchy. Refer to Note 13, “Fair Value Measurements” for more information.
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Recent Transactions and Developments |
3 Months Ended |
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Jun. 30, 2025 | |
Recent Transactions and Developments [Abstract] | |
Recent Transactions and Developments | Note 5—Recent Transactions and Developments
Telavant Disposition
On December 14, 2023, the Company completed the sale of its entire equity interest in its majority-owned subsidiary Telavant to Roche Holdings, Inc. (“Roche”) (the “Roche Transaction”). The Roche Transaction was made pursuant to a Stock Purchase Agreement dated October 22, 2023 among the Company, Telavant, Pfizer Inc. (“Pfizer”), and Roche (the “Stock Purchase Agreement”). Prior to the Roche Transaction, the Company held 75% of the issued and outstanding shares of common stock and preferred stock of Telavant, and Pfizer owned the remaining 25%, in each case on an as-converted basis. Refer to Note 5, “Recent Transactions and Developments” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2025 for further information regarding the Roche Transaction.
Pursuant to the Stock Purchase Agreement, the Company was due its pro rata portion of a one-time milestone payment of $150 million, following the initiation of a Phase 3 trial in ulcerative colitis. In June 2024, the one-time milestone was achieved. The milestone payment was paid to all of Telavant’s equity holders, including holders of Telavant RSUs, on a pro rata basis relative to their ownership of Telavant prior to the closing of the Roche Transaction. Accordingly, the Company recognized a gain on sale of Telavant net assets of $110.4 million for its pro rata portion during the three months ended June 30, 2024 in the accompanying condensed consolidated statements of operations.
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Discontinued Operations |
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Discontinued Operations | Note 6—Discontinued Operations
On October 28, 2024, the Company completed the sale of its entire equity interest in its majority-owned subsidiary, Dermavant, to Organon. The Dermavant Transaction
was made pursuant to the Merger Agreement between Dermavant, Organon, Merger Sub, and the Company. Pursuant to the Merger Agreement, Organon agreed to acquire Dermavant for cash consideration comprising an upfront payment, regulatory and
sales milestones, and royalties. Refer to Note 6, “Discontinued Operations” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2025 for further information regarding the Dermavant
Transaction. The Company concluded that Dermavant met the discontinued operations accounting criteria in the second fiscal quarter of 2024. As the Dermavant Transaction closed in October 2024, no Dermavant assets or liabilities were recognized on the balance sheet as of March 31, 2025 or June 30, 2025. Financial results of Dermavant are presented as “Income from discontinued operations, net of tax” in the accompanying condensed consolidated statements of operations for the three months ended June 30, 2024.
The following table presents components of discontinued operations included in “Income from discontinued operations, net of tax” (in thousands):
(1) Interest expense consists of interest payments related to outstanding debt held by Dermavant as well as the associated non-cash amortization of debt discounts and issuance costs.
In the accompanying condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table summarizes significant non-cash operating and investing items from discontinued operations for the three months ended June 30, 2024 (in thousands):
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Certain Balance Sheet Components |
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Certain Balance Sheet Components | Note 7—Certain Balance Sheet Components
Accrued Expenses
Accrued expenses at June 30, 2025 and March 31, 2025 consisted of the following (in thousands):
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Shareholders' Equity |
3 Months Ended |
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Jun. 30, 2025 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 8—Shareholders’ Equity
(A) At-the-Market Equity Offering Program
On September 19, 2022, the Company entered into a sales agreement with Cowen and Company, LLC (“Cowen”) to sell its common shares having an aggregate offering price of up to $400.0 million from time to time through an “at-the-market” equity offering program under which Cowen acts as the Company’s agent (the “ATM Facility”).
As of June 30, 2025, the Company had $400.0 million of remaining capacity available under the ATM Facility.
(B) Share Repurchase Program
The Company’s board of directors authorized a common share repurchase program, allowing for repurchases of common shares in an aggregate amount of up to $1.5 billion (excluding fees and expenses). This repurchase program was funded by available cash and cash equivalents on hand. In April 2024, pursuant to the share repurchase program, the Company entered into a share repurchase agreement with Sumitomo Pharma Co., Ltd. (“Sumitomo”) and repurchased all 71,251,083 common shares held by Sumitomo at a purchase price per share of $9.10, for an aggregate purchase price of approximately $648.4 million. Subsequent to the repurchase of the common shares held by Sumitomo, additional repurchases of 57,110,703 shares were made in open market transactions under the share repurchase program during the year ended March 31, 2025 for an aggregate purchase price of approximately $644.8 million. During the three months ended June 30, 2025, repurchases of 20,269,450 shares were made for an aggregate purchase price of approximately $208.3 million. The $1.5 billion common share repurchase program was completed as of June 30, 2025.
On June 24, 2025, in addition to the $1.5 billion common share repurchase program, the Company’s board of directors authorized a common share repurchase program allowing for repurchases of the Company’s common shares in an aggregate amount of up to $500 million (excluding fees and expenses). No purchases have been made as of June 30, 2025.
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Share-Based Compensation and Other Compensation Plans |
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Share-Based Compensation and Other Compensation Plans | Note 9—Share-Based Compensation and Other Compensation Plans
(A) RSL Equity Incentive Plans
RSL has three equity incentive plans: the Roivant Sciences Ltd. 2021 Equity Incentive Plan (the “RSL 2021 EIP”), the Roivant Sciences Ltd. Amended and Restated 2015 Equity Incentive Plan, and the Roivant Sciences Ltd. Amended and Restated 2015 Restricted Stock Unit Plan (collectively, the “RSL Equity Plans”). The RSL 2021 EIP was approved and adopted in connection with the Business Combination and became effective immediately prior to closing. At June 30, 2025, a total of 37,219,786 common shares were available for future grants under the RSL 2021 EIP.
Stock Options and Performance Stock Options
Activity for stock options and performance stock options under the RSL Equity Plans for the three months ended June 30, 2025 was as follows:
Restricted Stock Units
Activity for RSUs under the RSL Equity Plans for the three months ended June 30, 2025 was as follows:
Performance Restricted Stock Units
As of June 30, 2025, 36,872,465 PSUs granted under the RSL Equity Plans remain unvested. During the three months ended June 30, 2025, no PSUs were granted or forfeited.
Capped Value Appreciation Rights
March 2020 CVAR Grants
As of June 30, 2025, 17,548,368 CVARs granted in March 2020 remain outstanding. These CVARs had met the service vesting condition as of June 30, 2025 but have not satisfied their applicable hurdle price on an applicable hurdle measurement date. Such CVARs will be earned if the hurdle price is satisfied on a hurdle measurement date, being annually on March 30, prior to the expiration date of March 31, 2026.
November 2021 CVAR Grants
Activity for CVARs granted in November 2021 under the RSL 2021 EIP for the three months ended June 30, 2025 was as follows:
During the three months ended June 30, 2025, 297,795 common shares were issued upon their settlement.
(B) Subsidiary Equity Incentive Plans
Certain subsidiaries of RSL adopt their own equity incentive plan (“EIP”). Each EIP is generally structured so that the applicable subsidiary, and its affiliates’ employees, directors, officers, and consultants are eligible to receive non-qualified and incentive stock options, stock appreciation rights, restricted share awards, restricted stock unit awards, and other share awards under their respective EIP. The Company recorded share-based compensation expense of $19.3 million and $14.7 million for the three months ended June 30, 2025 and 2024, respectively, related to subsidiary EIPs.
(C) Cash Bonus Program
During the year ended March 31, 2024, the Company approved a special one-time cash retention bonus award to its employees in the aggregate amount of $79.7 million (the “Cash Bonus Program”). During the three months ended June 30, 2025, the Company recognized general and administrative expense and research and development expense of $2.1 million and $0.5 million, respectively, relating to the Cash Bonus Program. During the three months ended June 30, 2024, the Company recognized general and administrative expense and research and development expense of $6.9 million and $1.8 million, respectively, relating to the Cash Bonus Program.
(D) 2024 Senior Executive Compensation Program Cash Awards
In July 2024, the Compensation Committee of the board of directors approved a multi-year incentive compensation program for each of Matthew Gline, Chief Executive Officer; Mayukh Sukhatme, President and Chief Investment Officer; and Eric Venker, President and Immunovant CEO (the “2024 Senior Executive Compensation Program”). Pursuant to the 2024 Senior Executive Compensation Program, the Compensation Committee of the board of directors approved the following one-time cash retention awards in July 2024:
Mr. Gline and Dr. Venker received 75% of their respective cash retention awards as of June 30, 2025. The remaining 25% of the award will vest and become payable on or about September 19, 2025, in each case subject to the executive’s continuous service through the applicable vesting date.
The cash retention award provided to Dr. Sukhatme was paid in full as of March 31, 2025. If a Recoupment Event (as defined below) occurs on or prior to September 30, 2025, Dr. Sukhatme will be required to repay to the Company $15.0 million of the retention award. A “Recoupment Event” will be deemed to occur if (x) Dr. Sukhatme’s employment in good standing is terminated or otherwise ceases for any reason (except as provided in the following sentence) or (y) Dr. Sukhatme breaches any of his restrictive covenant obligations. In the event Dr. Sukhatme’s employment is terminated by the Company without “cause” (as defined in Dr. Sukhatme’s employment agreement) or due to death or disability, no portion of the cash retention award will be subject to repayment, provided that Dr. Sukhatme executes and does not revoke a release of claims. There was no Recoupment Event as of June 30, 2025.
As a result of the cash retention rewards, the Company recognized general and administrative expense of $3.7 million during the three months ended June 30, 2025. The remaining portion of $3.6 million as of June 30, 2025 will be recognized over the remaining service period ending September 30, 2025.
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Income Taxes |
3 Months Ended |
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Jun. 30, 2025 | |
Income Taxes [Abstract] | |
Income Taxes | Note 10—Income Taxes
The Company’s effective tax rate for the three months ended June 30, 2025 and 2024 was (1.7)% and (60.9)%, respectively. The effective tax rate for the three months ended June 30, 2025 is driven by the Company’s earnings by jurisdiction and a valuation allowance that eliminates the Company’s global net deferred tax assets. The effective tax rate for the three months ended June 30, 2024 is driven by the Company’s gain on sale of Telavant’s net assets, which qualifies for the substantial shareholding exemption in the U.K. and consequently is not subject to the corporation income tax, as well as the earnings by jurisdiction and a valuation allowance that eliminates the Company’s global net deferred tax assets.
The Company assesses the realizability of its deferred tax assets at each balance sheet date based on available positive and negative evidence in order to determine the amount which is more likely than
not to be realized and records a valuation allowance as necessary.
On July 4, 2025, H.R. 1, 119th Cong. (2025), also referred to as the “One Big Beautiful Bill Act” (the “2025 Tax Act” or “OBBBA”) was signed into law in the U.S, which includes a
broad range of tax reform provisions. ASC740, “Income Tax”, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. The Company is currently evaluating the
impact of the OBBBA on its consolidated financial statements.
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Commitments and Contingencies |
3 Months Ended |
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Jun. 30, 2025 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 11—Commitments and Contingencies
(A) Commitments
Lease Commitments
The Company has leases, consisting primarily of real estate leases. Refer to Note 11, “Leases” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2025 for further information
regarding the Company’s lease commitments.
Other Commitments
The Company has entered into commitments under various asset acquisition and license agreements. Under these agreements, the Company is required to make milestone payments upon successful completion
and achievement of certain development, regulatory and commercial milestones. The payment obligations under the asset acquisition and license agreements are contingent upon future events, such as the achievement of specified development, regulatory
and commercial milestones, and the Company will be required to make milestone payments and royalty payments in connection with the sale of products developed under these agreements. Refer to Note 12, “Commitments and Contingencies” in the Company’s
Annual Report on Form 10-K for the year ended March 31, 2025 for further information regarding certain key asset acquisition and license agreements. There have been no material changes to the key asset acquisition and license agreements relating to
continuing operations during the three months ended June 30, 2025. The Company has further commitments relating to other asset acquisition and license agreements that it has entered into and expects to
enter into additional asset acquisition and license agreements in the future, which may require upfront payments and long-term commitments of capital resources. Additionally, the Company enters into agreements with contract service providers to assist in the performance of its research and development activities. Expenditures to contract research organizations
and contract manufacturing organizations represent significant costs in the clinical development of its product candidates. Subject to required notice periods and certain obligations under binding purchase orders, the Company can elect to
discontinue the work under these agreements at any time. The Company expects to enter into additional collaborative research, contract research, manufacturing, and supplier agreements in the future, which may require upfront payments and long-term
commitments of capital resources.
In November 2021, the Company’s subsidiary, Immunovant, entered into a Product Service Agreement (“PSA”) with Samsung Biologics Co., Ltd. (“Samsung”), pursuant to which Samsung will manufacture and supply Immunovant with batoclimab drug substance for commercial sale, if approved, and perform other manufacturing-related services with respect to batoclimab. Upon execution of the PSA, Immunovant committed to purchase process performance qualification batches of batoclimab and pre-approval inspection batches of batoclimab which may be used for regulatory submissions and, pending regulatory approval, commercial sale. In addition, Immunovant has a minimum obligation to purchase further batches of batoclimab in the four-year period of 2026 through 2029. As of June 30, 2025, the remaining minimum purchase commitment related to this agreement was estimated to be approximately $43.1 million.
(B) Loss Contingencies
The Company may be, from time to time, a party to various disputes and claims arising from normal business activities. The Company accrues for loss contingencies when available information indicates
that it is probable that a liability has been incurred and the amount of such loss can be reasonably estimated, and if the Company believes that a reasonably possible loss exists, the Company discloses the facts and circumstances of the litigation
or claim, including an estimable range, if possible.
(C) Indemnification Agreements
The Company is a party to a number of agreements entered into in the ordinary course of business that contain typical provisions that obligate the Company to indemnify the other parties to such
agreements upon the occurrence of certain events. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain. The Company also indemnifies each of its directors and officers for certain events
or occurrences, subject to certain limits. The maximum amount of potential future indemnification is unlimited; however, the Company currently maintains director and officer liability insurance, which may cover certain liabilities arising from the
Company’s obligation to indemnify its directors and officers. To date, the Company has not incurred any material costs related to these indemnification obligations and has not accrued any liabilities related to such obligations in the accompanying
condensed consolidated financial statements as of June 30, 2025 and March 31, 2025.
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Earn-Out Shares |
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Earn-Out Shares [Abstract] | ||||||||||
Earn-Out Shares | Note 12—Earn-Out Shares
In connection with the Business Combination, the Company issued the following:
The Vesting Period commenced on November 9, 2021 and ends no later than September 30, 2026 (the “Vesting Period”). The Vesting Period will, if a definitive purchase agreement with respect to a Sale (as
defined in the Sponsor Support Agreement) is entered into on or prior to the end of such period, be extended to the earlier of one day after the consummation of such Sale and the termination of such definitive transaction agreement, and if a Sale
occurs during such Vesting Period, then all of the Earn-Out Shares unvested as of such time will automatically vest immediately prior to the consummation of such Sale. If any Earn-Out Shares have not vested on or prior to the end of such Vesting
Period, then such Earn-Out Shares will be forfeited. The Earn-Out Shares require liability classification and are classified as “Liability instruments measured at fair value” on the accompanying condensed consolidated balance sheets. The Earn-Out Shares liability is subject to remeasurement at each balance sheet date with changes in fair value recognized in the Company’s statements of operations. As of June 30, 2025, no Earn-Out Shares have vested.
The Earn-Out Shares are subject to certain lock-up agreements pursuant to which, among other things, the MAAC Sponsor and each of MAAC’s independent directors (the “MAAC Independent Directors”) have agreed not to effect any sale or distribution of the Company’s common shares during the applicable lock-up period, subject to customary exceptions. The lock-up periods applicable to the Company’s common shares, including Earn-Out Shares, held by the MAAC Sponsor and MAAC Independent Directors as of immediately following the closing of the Business Combination (the “Closing”) are (i) with respect to 25% of the Company’s common shares held by the MAAC Sponsor and MAAC Independent Directors, six months following the Closing, which expired on March 30, 2022, (ii) with respect to an additional 25% of the Company’s common shares held by the MAAC Sponsor and MAAC Independent Directors, the earlier of twelve months following the achievement of certain price-based vesting restrictions or six years from the Closing and (iii) with respect to 50% of the Company’s common shares held by the MAAC Sponsor and MAAC Independent Directors, thirty-six months following the Closing, which expired on September 30, 2024.
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Fair Value Measurements |
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Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 13—Fair Value Measurements
Recurring Fair Value Measurements
The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2025 and March 31, 2025, by level, within the fair value hierarchy (in thousands):
(1) At June 30, 2025, Level 3 includes the fair value of the Earn-Out Shares of $12.3 million. At March 31, 2025, Level 3 includes the fair value of the Earn-Out Shares of $10.0 million.
There were no transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy that occurred during the three months ended June 30, 2025. Level 3 Disclosures
The Company measures its Level 3 assets and liabilities at fair value based on significant inputs not observable in the market, which causes them to be classified as a Level 3 measurement within the
fair value hierarchy. The valuation of the Level 3 assets and liabilities uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates
on an ongoing basis as additional data impacting the assumptions and estimates are obtained. Changes in the fair value related to updated assumptions and estimates are recorded within the statements of operations at the end of each reporting
period.
The fair value of Level 3 assets and liabilities may change significantly as additional data are obtained, impacting the Company’s assumptions regarding probabilities of potential scenarios used to
estimate fair value. In evaluating this information, considerable judgment is required to interpret the data used to develop the assumptions and estimates. Accordingly, the use of different market assumptions and/or different valuation techniques
may have a material effect on the estimated fair value amounts, and such changes could materially impact the Company’s results of operations in future periods.
The changes in fair value of the Level 3 assets during the three months ended June 30, 2025 and 2024 were as follows (in thousands):
The changes in fair value of the Level 3 liabilities during the three months ended June 30, 2025 and 2024 were as follows (in thousands):
Investment in Datavant
The Company elected the fair value option to account for the investment in Datavant. The estimate of fair value for this investment was determined using the income approach and implementation of the option pricing method (“OPM”). The OPM allows for the allocation of a company’s equity value among the various equity capital owners (preferred and common shareholders). The OPM uses the preferred shareholders’ liquidation preferences, participation rights, dividend policy, and conversion rights to determine how proceeds from a liquidity event shall be distributed among the various ownership classes at a future date. The fair value was calculated using significant unobservable inputs including the following:
Earn-Out Shares
The fair value of the Earn-Out Shares issued as part of the Business Combination was calculated using the Monte Carlo simulation method under the income approach. Refer to Note 12, “Earn-Out Shares” for additional details. Significant unobservable inputs used to calculate the fair value of the Earn-Out Shares included the following:
As of March 31, 2025, the Company began using a blend of its historical and implied volatility, rather than exclusively relying on historical volatility, to
estimate the expected volatility assumption of various equity instruments issued by the Company. Due to changes in the Company’s capital position, the Company believes this methodology better reflects its expected future volatility.
As of June 30, 2025 and March 31, 2025, the fair value of the Earn-Out Shares was $12.3 million and $10.0 million, respectively. Earn-Out Shares were included in “Liability instruments measured at fair value” in the accompanying condensed consolidated balance sheets.
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Net (Loss) Income per Common Share |
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income per Common Share | Note 14—Net (Loss) Income per Common Share
Basic net (loss) income per common share is computed by dividing net (loss) income attributable to Roivant Sciences Ltd. by the weighted-average number of common stock outstanding during the period.
Diluted net (loss) income per common share is computed by dividing the net (loss) income attributable to Roivant Sciences Ltd. by the diluted weighted-average number of common stock outstanding during the period.
For periods of loss from continuing operations, diluted loss per share is calculated similar to basic loss per share as the effect of including all potentially dilutive common stock equivalents is
anti-dilutive. For the three months ended June 30, 2025 all outstanding common stock equivalents have been excluded from the computation of diluted loss per share because their effect was anti-dilutive due
to the net loss from continuing operations.
As of June 30, 2025 and 2024, the following potentially dilutive common stock equivalents were excluded from the computation of diluted net (loss) income per common share:
(1) Refer to Note 9, “Share-Based Compensation and Other Compensation Plans” for details regarding settlement of CVARs.
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Segment Information |
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Note 15—Segment Information
The Company is operated and managed as a
operating and reportable segment which focuses on the discovery, development and commercialization of medicines and technologies. The Company’s Chief Operating Decision Maker (“CODM”) is its chief executive officer.The CODM assesses performance for the Company based on net (loss) income, which is reported on the condensed consolidated statements of operations and comprehensive (loss) income as net (loss) income.
The measure of segment assets is reported on the condensed consolidated balance sheets as total assets.
The Company expects to continue to incur significant expenses and operating losses for the foreseeable future as it advances product candidates through all stages of development
and clinical trials and, ultimately, seeks regulatory approval. As such, the CODM uses cash forecast models and budgeted versus actual results to assess performance, make operating decisions and allocate resources across the Company including to
various Vants and research and development projects. The Company’s significant segment expenses are as follows (in thousands):
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Subsequent Events |
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||
Subsequent Events | Note 16—Subsequent Events
In July 2025, the board of directors appointed Frank Torti as an executive officer of the Company and as President and Vant Chair at the Company’s wholly-owned subsidiary, Roivant Sciences, Inc.
(“RSI”). In connection with this appointment, the Compensation Committee approved a compensation package for Dr. Torti consisting of (i) a one-time cash retention award, (ii) PSUs with both performance- and time-vesting components and (iii)
time-vesting RSUs. The Company is evaluating the accounting impact of these awards and will include relevant disclosures in its Form 10-Q for the three months ending September 30, 2025.
A summary of the awards approved is as follows:
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Jun. 30, 2025 |
Jun. 30, 2024 |
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Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (223,355) | $ 95,297 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2025 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy (Policies) |
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | The Company’s fiscal year ends on March 31, and its fiscal quarters end on June 30, September 30, and December 31. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim
financial information and follow the requirements of the United States Securities and Exchange Commission (“SEC”) for interim financial reporting. Accordingly, these unaudited condensed consolidated financial statements do not include all of the
information and disclosures required by U.S. GAAP for complete financial statements as certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The unaudited condensed consolidated
financial statements have been prepared on the same basis as the audited consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual
Report on Form 10-K for the fiscal year ended March 31, 2025 filed with the SEC. The unaudited condensed consolidated balance sheet at March 31, 2025 has been
derived from the audited consolidated financial statements at that date. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, that are
considered necessary to present fairly the financial position of the Company and its results of operations and cash flows for the interim periods presented. Operating results for the three months ended June 30,
2025 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2026, for any other interim period, or for any other future year. Any references in these notes to applicable accounting guidance are meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (‘‘ASC’’) and Accounting Standards
Updates (‘‘ASU’’) of the Financial Accounting Standards Board (‘‘FASB’’). The unaudited condensed consolidated financial statements include the accounts of RSL and the subsidiaries in which it has a controlling financial interest, most often
through a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.
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Principles of Consolidation | For consolidated entities where the Company owns or is exposed to less than 100% of the economics, the Company records net loss attributable to noncontrolling interests in its unaudited condensed consolidated statements of operations equal to the noncontrolling interest’s proportionate share of the respective operations. The Company presents noncontrolling interests as a component of shareholders’ equity on its unaudited condensed consolidated balance sheets. The Company accounts for changes in its ownership interest in its subsidiaries while control is retained as equity transactions. The carrying amount of the noncontrolling interest is adjusted to
reflect the change in the ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted is recognized within shareholders’ equity
attributable to RSL. In September 2024, the Company’s subsidiary, Dermavant Sciences Ltd. (“Dermavant”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Organon & Co. (“Organon”), Organon
Bermuda Ltd., an indirect wholly owned subsidiary of Organon (“Merger Sub”), and the Company, solely in its capacity as the representative of the securityholders of Dermavant. Organon’s acquisition of Dermavant (the “Dermavant Transaction”) was
completed in October 2024 and the Company determined the acquisition met the discontinued operations accounting criteria. As the Dermavant Transaction closed in October 2024, no Dermavant assets or liabilities were recognized on the balance sheet
as of March 31, 2025 or June 30, 2025. Accordingly, the Company classified the results of Dermavant as discontinued operations in its condensed consolidated statements of operations for the three months ended June 30, 2024. The cash flows related
to discontinued operations have not been segregated and are included in the condensed consolidated statements of cash flows. The discussions in these notes to the condensed consolidated financial statements relate solely to the Company’s continuing
operations, unless otherwise noted. For further information on the discontinued operations related to Dermavant, refer to Note 6, “Discontinued Operations.”
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Use of Estimates | (B) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying
notes. The Company regularly evaluates estimates and assumptions related to assets, liabilities, costs, expenses, contingent liabilities, share-based compensation and research and development costs. The Company bases its estimates and assumptions
on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results could differ from those estimates.
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Concentrations | (C) Concentrations Financial instruments that potentially subject the Company to concentration of credit risk include cash, cash equivalents, and marketable securities. The Company maintains cash deposits, cash
equivalents, and marketable securities in highly-rated, federally-insured financial institutions in excess of federally insured limits. The Company has established guidelines relative to diversification and maturities to maintain safety and
liquidity. The Company has not experienced any credit losses related to these financial instruments and does not believe that it is exposed to any significant credit risk related to these instruments. The Company has long-lived assets in different geographic locations. As of June 30, 2025 and March 31, 2025, a
majority of the Company’s long-lived assets were located in the United States (‘‘U.S.’’).
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Segment Reporting | (D) Segment Reporting Operating segments are defined as components of an entity about which separate, discrete information is available for evaluation by the chief operating decision maker in deciding how to allocate
resources and in assessing performance. The Company’s chief operating decision maker views the operations and manages the business in a single operating and reportable segment focused on the discovery, development and commercialization of medicines
and technologies. The accounting policies of the segment are the same as those described in this Note 2, “Summary of Significant Accounting Policies.” See Note 15, “Segment Information” for further detail.
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Cash, Cash Equivalents, and Restricted Cash | (E) Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash deposits in banks and all highly liquid investments that are readily convertible to cash. The Company considers all highly liquid investments purchased with
original maturities of three months or less to be cash equivalents. Cash equivalents consist of amounts invested in money market funds and United States (“U.S.”) Treasury securities. Cash as reported in the accompanying condensed consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as presented on the accompanying condensed consolidated balance sheets as follows (in thousands):
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Marketable Securities | (F) Marketable Securities The Company considers all highly liquid investments in securities with original maturities of greater than three months at the time of purchase to be marketable securities. Marketable securities
consist of amounts invested in U.S. Treasury securities. The Company’s marketable securities are classified as available-for-sale or held-to-maturity and are carried at fair value or amortized cost, respectively. Unrealized holding gains and
losses, net of income taxes, on available-for-sale debt securities are reflected as a separate component of stockholders’ equity until realized. The cost of marketable securities sold and the amount reclassified out of accumulated other
comprehensive income into earnings is determined using the specific identification method. Interest income is recorded as earned within “Interest income” in the condensed consolidated statements of operations.
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Contingencies | (G) Contingencies The Company may be, from time to time, a party to various disputes and claims arising from normal business activities. The Company continually assesses any litigation or other claims it may confront to
determine if an unfavorable outcome would lead to a probable loss or reasonably possible loss which could be estimated. The Company accrues for all contingencies at the earliest date at which the Company deems it probable that a liability has been
incurred and the amount of such liability can be reasonably estimated. If the estimate of a probable loss is a range and no amount within the range is more likely than another, the Company accrues the minimum of the range. In the cases where the
Company believes that a reasonably possible loss exists, the Company discloses the facts and circumstances of the contingent loss, including an estimable range, if possible.
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Investments | (H) Investments Investments in equity securities for which the Company does not have control or significant influence may be accounted for using (i) the fair value option, if elected, (ii) fair value through earnings,
if fair value is readily determinable or (iii) for equity investments without readily determinable fair values, the measurement alternative to measure at cost adjusted for any impairment and observable price changes, as applicable. The election to
use the measurement alternative is made for each eligible investment. The Company has elected the fair value option to account for certain investments over which the Company has significant influence. The Company believes the fair value option best reflects the
underlying economics of the investment. See Note 4, “Equity Method Investments.”
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Fair Value Measurements | (I) Fair Value Measurements The Company utilizes fair value measurement guidance prescribed by U.S. GAAP to value its financial instruments. The guidance establishes a fair value hierarchy for financial instruments measured at
fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability
based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed
based on the best information available in the circumstances. Fair value is defined as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the reporting date. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a three-tier fair value hierarchy that distinguishes among the following:
To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of
judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair
value measurement. The Company’s financial instruments include shares of common stock of Arbutus Biopharma Corporation (“Arbutus”) and Class A units of Heracles Parent, L.L.C. (“Datavant”). The Company’s financial
instruments also include liability instruments issued, including the earn-out shares liabilities issued in connection with the Company’s business combination (the “Business Combination”) with Montes Archimedes Acquisition Corp. (“MAAC”) (as
discussed in Note 12, “Earn-Out Shares”); its investments in other entities; cash; cash equivalents, consisting of money market funds; marketable securities, consisting of U.S. Treasury securities; and accounts payable. The shares of Arbutus common stock and investments in common stock with a readily determinable fair value are classified as Level 1, and their fair value is determined based upon quoted market prices
in an active market. The Class A units of Datavant and liability instruments issued are classified as Level 3 within the fair value hierarchy as the assumptions and estimates used in the valuations are unobservable in the market. Cash and accounts
payable are stated at their respective historical carrying amounts, which approximate fair value due to their short-term nature. Money market funds are included in Level 1 of the fair value hierarchy and are valued at the closing price reported by
an actively traded exchange. Marketable securities are classified as available-for-sale or held-to-maturity and are carried at fair value or amortized cost, respectively.
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Share-Based Compensation | (J) Share-Based Compensation Share-based awards to employees, directors, and consultants include stock options, restricted stock units (“RSUs”), performance options, performance restricted stock units (“PSUs”) and capped value
appreciation rights (“CVARs”). The Company measures the fair value of its stock options that only have service vesting requirements or performance-based options without market conditions using the Black-Scholes option pricing model.
Certain assumptions need to be made with respect to utilizing the Black-Scholes option pricing model, including the expected life of the award, volatility of the underlying shares, the risk-free interest rate and the fair value of the Company’s
shares of common stock. Since the Company has limited option exercise history, it has generally elected to estimate the expected life of an award based upon the “simplified method” with the continued use of this method extended until such time the
Company has sufficient exercise history. In prior fiscal years, because the Company did not have sufficient trading history to rely on the volatility of its common stock, volatility was estimated by taking the average historical price volatility
for comparable publicly traded peer companies. Beginning on April 1, 2025, the Company began using a blend of its historical and implied volatility to estimate the expected share price volatility assumption. Due
to changes in the Company’s capital position, the Company believes this methodology better reflects its expected future volatility. The risk-free interest rate is based on the rates paid on securities issued by the U.S. Treasury with a
term approximating the expected life of the equity award. The Company accounts for pre-vesting award forfeitures when they occur. As RSL’s common shares are publicly traded, the Company determines the fair value of each common share underlying
share-based awards based on the closing price of its common shares as reported by Nasdaq on the date of grant. For privately held Vants, the fair value of the shares of common stock underlying share-based awards on each grant date is estimated,
given the absence of a public trading market.
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Foreign Currency | (K) Foreign Currency The Company’s functional and reporting currency is the U.S. dollar. For the Company’s subsidiaries whose functional currency is other than the U.S. dollar, assets and liabilities are translated into
U.S. dollars at the exchange rates in effect at the balance sheet date, while their revenue and expenses are translated at the average exchange rates for the reporting period. The cumulative foreign currency translation adjustments are recorded as
a component of “Accumulated other comprehensive income (loss)” in the accompanying condensed consolidated statement of shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in “Other expense, net” in the accompanying condensed consolidated statements of operations. For the three months ended June 30, 2025, foreign currency transaction losses were $6.8 million. Foreign currency transaction losses were immaterial for the three months ended June 30, 2024.
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Significant Accounting Policies /Recently Adopted/ Issued Accounting Pronouncements | (L) Significant Accounting Policies There were no significant changes to the Company’s significant accounting policies from those disclosed in the Company’s Form 10-K for the year ended March 31, 2025. (M) Recently Adopted Accounting Pronouncements In November 2023, the FASB issued 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” which updates reportable segment disclosure requirements, primarily through
enhanced disclosures about significant segment expenses. The Company adopted the guidance in the Company’s Form 10-K for the year ended March 31, 2025 and has made the required disclosures in this Form 10-Q. (N) Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that the Company adopts as of the specified effective date. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which includes updates to the income tax disclosures related to
the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024 and are applicable to the Company’s fiscal year beginning April 1, 2025, with early
adoption permitted. The amendments should be applied prospectively, however retrospective application is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which
requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. The amendments are effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years
beginning after December 15, 2027. This ASU is applicable to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2028, and subsequent interim periods, with early adoption permitted. The amendments can be adopted either (i)
prospectively to financial statements issued for reporting periods after the effective date of this ASU or (ii) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of
adopting this ASU on its consolidated financial statements.
|
Summary of Significant Accounting Policies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash | Cash as reported in the accompanying condensed consolidated statements of cash flows includes the aggregate amounts of cash, cash equivalents, and restricted cash as presented on the accompanying condensed consolidated balance sheets as follows (in thousands):
|
Cash, Cash Equivalents, and Marketable Securities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Marketable Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Marketable Securities | Cash, cash equivalents, and marketable securities consisted of the following (in thousands):
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Unrealized Positions for Marketable Securities | The following table summarizes the unrealized positions for the Company’s marketable securities (in thousands):
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Discontinued Operations (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | The following table presents components of discontinued operations included in “Income from discontinued operations, net of tax” (in thousands):
(1) Interest expense consists of interest payments related to outstanding debt held by Dermavant as well as the associated non-cash amortization of debt discounts and issuance costs.
In the accompanying condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. The following table summarizes significant non-cash operating and investing items from discontinued operations for the three months ended June 30, 2024 (in thousands):
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Certain Balance Sheet Components (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
Certain Balance Sheet Components [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses | Accrued expenses at June 30, 2025 and March 31, 2025 consisted of the following (in thousands):
|
Share-Based Compensation and Other Compensation Plans (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | ||||||||||||||||||||||||||||||||||||
Activity for Stock Options and Performance Stock Options | Activity for stock options and performance stock options under the RSL Equity Plans for the three months ended June 30, 2025 was as follows:
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Activity for RSUs | Activity for RSUs under the RSL Equity Plans for the three months ended June 30, 2025 was as follows:
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Activity for Capped Value Appreciation Rights | Activity for CVARs granted in November 2021 under the RSL 2021 EIP for the three months ended June 30, 2025 was as follows:
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One-time Cash Retention Awards | Pursuant to the 2024 Senior Executive Compensation Program, the Compensation Committee of the board of directors approved the following one-time cash retention awards in July 2024:
|
Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities are Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2025 and March 31, 2025, by level, within the fair value hierarchy (in thousands):
(1) At June 30, 2025, Level 3 includes the fair value of the Earn-Out Shares of $12.3 million. At March 31, 2025, Level 3 includes the fair value of the Earn-Out Shares of $10.0 million.
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Changes in Fair Value of the Level 3 Assets | The changes in fair value of the Level 3 assets during the three months ended June 30, 2025 and 2024 were as follows (in thousands):
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Changes in Fair Value of the Level 3 Liabilities | The changes in fair value of the Level 3 liabilities during the three months ended June 30, 2025 and 2024 were as follows (in thousands):
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Datavant [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Calculation Using Significant Unobservable Inputs | The fair value was calculated using significant unobservable inputs including the following:
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Earn-Out Shares [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Calculation Using Significant Unobservable Inputs | Significant unobservable inputs used to calculate the fair value of the Earn-Out Shares included the following:
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Net (Loss) Income per Common Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Potentially Dilutive Common Stock Equivalents Excluded from Computation of Diluted Net (Loss) Income per Common Share | As of June 30, 2025 and 2024, the following potentially dilutive common stock equivalents were excluded from the computation of diluted net (loss) income per common share:
(1) Refer to Note 9, “Share-Based Compensation and Other Compensation Plans” for details regarding settlement of CVARs.
|
Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Segment Expenses | The Company’s significant segment expenses are as follows (in thousands):
|
Subsequent Events (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2025 | |||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||
Summary of Awards Approved | A summary of the awards approved is as follows:
|
Description of Business and Liquidity (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Mar. 31, 2025 |
Dec. 31, 2023 |
|
Description of Business and Liquidity [Abstract] | ||||
Cash, cash equivalents, and marketable securities | $ 4,503,151 | $ 4,886,891 | ||
Accumulated deficit | (315,588) | $ 116,060 | ||
Net losses from continuing operations | $ (273,911) | $ (31,603) | ||
Telavant Holdings, Inc [Member] | ||||
Description of Business and Liquidity [Abstract] | ||||
Cash payment received for sale of assets | $ 5,200,000 |
Summary of Significant Accounting Policies (Details) $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2025
USD ($)
| |
Summary of Significant Accounting Policies [Abstract] | |
Foreign currency transaction losses | $ 6.8 |
Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2025 |
Mar. 31, 2025 |
---|---|---|
Summary of Significant Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 1,238,459 | $ 2,715,411 |
Restricted cash (included in “Other current assets”) | 2,258 | 2,358 |
Restricted cash (included in “Other assets”) | 7,892 | 7,892 |
Cash, cash equivalents and restricted cash | $ 1,248,609 | $ 2,725,661 |
Cash, Cash Equivalents, and Marketable Securities - Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2025 |
Mar. 31, 2025 |
---|---|---|
Cash and cash equivalents | ||
Cash | $ 94,787 | $ 93,954 |
Money market funds | 1,143,672 | 2,621,457 |
Total cash and cash equivalents | 1,238,459 | 2,715,411 |
Marketable securities | ||
U.S. Treasury securities, available-for-sale | 1,803,035 | 0 |
U.S. Treasury securities, held-to-maturity | 1,461,657 | 2,171,480 |
Total marketable securities | 3,264,692 | 2,171,480 |
Total cash, cash equivalents, and marketable securities | $ 4,503,151 | $ 4,886,891 |
Cash, Cash Equivalents, and Marketable Securities - Unrealized Positions for Marketable Securities (Details) - US Treasury Securities [Member] $ in Thousands |
Jun. 30, 2025
USD ($)
|
---|---|
Marketable Securities [Abstract] | |
U.S. Treasury securities, available-for-sale, Amortized cost | $ 1,802,565 |
U.S. Treasury securities, available-for-sale, Gross unrealized gains | 654 |
U.S. Treasury securities, available-for-sale, Gross unrealized losses | (184) |
U.S. Treasury securities, available-for-sale, Fair value | 1,803,035 |
U.S. Treasury securities, held-to-maturity, Amortized cost | 1,461,657 |
U.S. Treasury securities, held-to-maturity, Gross unrealized gains | 211 |
U.S. Treasury securities, held-to-maturity, Gross unrealized losses | (603) |
U.S. Treasury securities, held-to-maturity, Fair value | 1,461,265 |
Amortized cost | 3,264,222 |
Gross unrealized gains | 865 |
Gross unrealized losses | (787) |
Fair value | $ 3,264,300 |
Equity Method Investments - Investment in Arbutus (Details) - Arbutus Biopharma Corporation [Member] - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Mar. 31, 2025 |
|
Equity Method Investments [Abstract] | |||
Equity method investment ownership percentage | 20.00% | ||
Aggregate fair value investment | $ 120.0 | $ 135.6 | |
Unrealized gains (losses) on investments | $ 15.5 | $ 19.8 | |
Closing price of common stock (in Dollars per share) | $ 3.09 | $ 3.49 | |
Common Stock [Member] | |||
Equity Method Investments [Abstract] | |||
Number of shares acquired (in Shares) | 38,847,462 |
Equity Method Investments - Investment in Datavant (Details) - Datavant Merger [Member] - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
Mar. 31, 2025 |
|
Equity Method Investments [Abstract] | |||
Equity method investment ownership percentage | 9.00% | ||
Aggregate fair value investment | $ 163.8 | $ 167.4 | |
Unrealized gains (losses) on investments | $ 3.6 | $ 4.6 |
Recent Transactions and Developments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 14, 2023 |
Jun. 30, 2024 |
|
Roche Transaction [Member] | ||
Recent Transactions and Developments [Abstract] | ||
Consideration to be received from milestone | $ 150 | |
RSL [Member] | Telavant Holdings, Inc. [Member] | ||
Recent Transactions and Developments [Abstract] | ||
Ownership of subsidiary | 75.00% | |
Gain on sale of Telavant net assets | $ 110,400 | |
Pfizer [Member] | Telavant Holdings, Inc. [Member] | ||
Recent Transactions and Developments [Abstract] | ||
Ownership of subsidiary | 25.00% |
Discontinued Operations (Details) - Dermavant [Member] - Discontinued Operations, Disposed of by Sale [Member] - USD ($) $ in Millions |
Jun. 30, 2025 |
Mar. 31, 2025 |
---|---|---|
Discontinued Operations [Abstract] | ||
Dermavant assets | $ 0 | $ 0 |
Dermavant liabilities | $ 0 | $ 0 |
Certain Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands |
Jun. 30, 2025 |
Mar. 31, 2025 |
---|---|---|
Certain Balance Sheet Components [Abstract] | ||
Research and development expenses | $ 49,801 | $ 45,813 |
Compensation-related expenses | 26,534 | 53,928 |
Other expenses | 12,393 | 14,553 |
Total accrued expenses | $ 88,728 | $ 114,294 |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2025 |
Jun. 24, 2025 |
Mar. 31, 2025 |
Apr. 30, 2024 |
Sep. 19, 2022 |
|
Stock Repurchase Program [Member] | |||||
Shareholders' Equity [Abstract] | |||||
Common stock repurchase authorized amount | $ 1,500.0 | $ 500.0 | $ 1,500.0 | ||
Number of shares repurchased (in Shares) | 20,269,450 | 57,110,703 | |||
Aggregate purchase price | $ 208.3 | $ 644.8 | |||
Stock purchases | 0.0 | ||||
Stock Repurchase Program [Member] | Sumitomo Pharma Co. Ltd. [Member] | |||||
Shareholders' Equity [Abstract] | |||||
Number of shares repurchased (in Shares) | 71,251,083 | ||||
Share price (in Dollars per share) | $ 9.1 | ||||
Aggregate purchase price | $ 648.4 | ||||
At-the-Market Equity Offering Program [Member] | Cowen [Member] | |||||
Shareholders' Equity [Abstract] | |||||
Common shares aggregate offering price authorized | $ 400.0 | ||||
Common shares aggregate offering price authorized, remaining capacity available | $ 400.0 |
Share-Based Compensation and Other Compensation Plans (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 19, 2025 |
Jul. 31, 2024
shares
|
Jun. 30, 2025
USD ($)
Plan
shares
|
Jun. 30, 2024
USD ($)
|
Mar. 31, 2024
USD ($)
|
Sep. 30, 2025
USD ($)
|
Mar. 31, 2025
shares
|
|
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Number of equity incentive plans (in Plan) | Plan | 3 | ||||||
Number of units granted under the plan remain unvested (in Shares) | shares | 0 | 348,527 | |||||
Forfeited (in Shares) | shares | 50,732 | ||||||
General and administrative expense | $ | $ 134,019 | $ 99,892 | |||||
Research and development expense | $ | $ 152,919 | 120,507 | |||||
RSL 2021 EIP [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Common shares available for future grants (in Shares) | shares | 37,219,786 | ||||||
Subsidiary Equity Incentive Plans [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Share-based compensation expense | $ | $ 19,300 | 14,700 | |||||
Cash Bonus Program [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Compensation-related expenses | $ | $ 79,700 | ||||||
General and administrative expense | $ | 2,100 | 6,900 | |||||
Research and development expense | $ | $ 500 | $ 1,800 | |||||
Performance Restricted Stock Units [Member] | President and Chief Investment Officer [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Granted (in Shares) | shares | 80,550 | ||||||
Performance Restricted Stock Units [Member] | RSL 2021 EIP [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Granted (in Shares) | shares | 0 | ||||||
Forfeited (in Shares) | shares | 0 | ||||||
Performance Restricted Stock Units [Member] | RSL Equity Plans [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Number of units granted under the plan remain unvested (in Shares) | shares | 36,872,465 | ||||||
CVARs [Member] | March 2020 CVAR Grants [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Number of shares outstanding (in Shares) | shares | 17,548,368 | ||||||
CVARs [Member] | November 2021 CVAR Grants [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Number of shares issued (in Shares) | shares | 297,795 | ||||||
One-Time Cash Retention Awards [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
General and administrative expense | $ | $ 3,700 | ||||||
Cash compensation amount | $ | $ 3,600 | ||||||
One-Time Cash Retention Awards [Member] | Tranche Two [Member] | Forecast [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Percentage of vesting rights | 25.00% | ||||||
One-Time Cash Retention Awards [Member] | CEO and COO [Member] | Tranche Two [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Percentage of vesting rights | 75.00% | ||||||
One-Time Cash Retention Awards [Member] | President and Chief Investment Officer [Member] | Forecast [Member] | |||||||
Share-Based Compensation and Other Compensation Plans [Abstract] | |||||||
Retention award repayable on recoupment event | $ | $ 15,000 |
Share-Based Compensation and Other Compensation Plans - Activity for Stock Options and Performance Stock Options (Details) - RSL Equity Plans [Member] - Stock Options and Performance Stock Options [Member] |
3 Months Ended |
---|---|
Jun. 30, 2025
shares
| |
Share-Based Compensation and Other Compensation Plans [Abstract] | |
Options outstanding, beginning balance (in Shares) | 139,412,098 |
Granted (in Shares) | 1,976,147 |
Exercised (in Shares) | (5,481,656) |
Forfeited/Canceled (in Shares) | (313,373) |
Options outstanding, ending balance (in Shares) | 135,593,216 |
Options exercisable at June 30, 2025 (in Shares) | 113,027,137 |
Share-Based Compensation and Other Compensation Plans - Activity for RSUs (Details) - RSL Equity Plans [Member] - Roiv Restricted Stock [Member] |
3 Months Ended |
---|---|
Jun. 30, 2025
shares
| |
Share-Based Compensation and Other Compensation Plans [Abstract] | |
Non-vested balance, beginning (in Shares) | 14,119,949 |
Granted (in Shares) | 4,097,713 |
Vested (in Shares) | (1,605,772) |
Forfeited (in Shares) | (373,237) |
Non-vested balance, ending (in Shares) | 16,238,653 |
Share-Based Compensation and Other Compensation Plans - Activity for Capped Value Appreciation Rights (Details) |
3 Months Ended |
---|---|
Jun. 30, 2025
shares
| |
Share-Based Compensation and Other Compensation Plans [Abstract] | |
Non-vested balance, beginning (in Shares) | 348,527 |
Vested (in Shares) | (297,795) |
Forfeited (in Shares) | (50,732) |
Non-vested balance, ending (in Shares) | 0 |
Share-Based Compensation and Other Compensation Plans - One-time Cash Retention Awards (Details) - Performance Restricted Stock Units [Member] |
1 Months Ended |
---|---|
Jul. 31, 2024
shares
| |
Chief Executive Officer [Member] | |
Share-Based Compensation and Other Compensation Plans [Abstract] | |
Granted (in Shares) | 5,725 |
President and Chief Investment Officer [Member] | |
Share-Based Compensation and Other Compensation Plans [Abstract] | |
Granted (in Shares) | 80,550 |
President and Immunovant CEO [Member] | |
Share-Based Compensation and Other Compensation Plans [Abstract] | |
Granted (in Shares) | 7,465 |
Income Taxes (Details) |
3 Months Ended | |
---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Income Taxes [Abstract] | ||
Effective tax rate | (1.70%) | (60.90%) |
Commitments and Contingencies (Details) - Samsung [Member] $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2025
USD ($)
| |
Commitments and Contingencies [Abstract] | |
Period to purchase additional batches of batoclimab | 4 years |
Remaining minimum purchase commitment related to agreement | $ 43.1 |
Earn-Out Shares (Details) - $ / shares |
3 Months Ended | 6 Months Ended | 36 Months Ended | 72 Months Ended |
---|---|---|---|---|
Jun. 30, 2025 |
Mar. 31, 2022 |
Sep. 30, 2024 |
Sep. 30, 2027 |
|
MAAC Sponsor [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Number of earn-out shares vested (in Shares) | 0 | |||
MAAC Sponsor [Member] | 20% Earn-Out [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Common shares issued (in Shares) | 2,033,591 | |||
Percentage of earn-out shares | 20.00% | |||
MAAC Sponsor [Member] | 20% Earn-Out [Member] | Independent Directors [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Common shares issued (in Shares) | 10,000 | |||
Number of trading days to meet earn-out price threshold | 20 days | |||
Trading day period for earn-out shares | 30 days | |||
MAAC Sponsor [Member] | 10 % Earn-Out [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Common shares issued (in Shares) | 1,016,796 | |||
Percentage of earn-out shares | 10.00% | |||
MAAC Sponsor [Member] | 10 % Earn-Out [Member] | Independent Directors [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Common shares issued (in Shares) | 5,000 | |||
Number of trading days to meet earn-out price threshold | 20 days | |||
Trading day period for earn-out shares | 30 days | |||
MAAC Lock Up Agreement [Member] | Six Months [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Percentage of lock-up period of common shares held by MAAC Lock Up Agreement | 25.00% | |||
MAAC Lock Up Agreement [Member] | Twelve Months [Member] | Forecast [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Percentage of lock-up period of common shares held by MAAC Lock Up Agreement | 25.00% | |||
MAAC Lock Up Agreement [Member] | Thirty-Six Months [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Percentage of lock-up period of common shares held by MAAC Lock Up Agreement | 50.00% | |||
Minimum [Member] | MAAC Sponsor [Member] | 20% Earn-Out [Member] | Independent Directors [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Earn-out share price (in Dollars per share) | $ 15 | |||
Minimum [Member] | MAAC Sponsor [Member] | 10 % Earn-Out [Member] | Independent Directors [Member] | ||||
Earn-Out Shares [Abstract] | ||||
Earn-out share price (in Dollars per share) | $ 20 |
Fair Value Measurements (Details) - Earn-Out Shares [Member] - USD ($) $ in Millions |
Jun. 30, 2025 |
Mar. 31, 2025 |
---|---|---|
Fair Value Measurements [Abstract] | ||
Liabilities at fair value | $ 12.3 | $ 10.0 |
Level 3 [Member] | ||
Fair Value Measurements [Abstract] | ||
Liabilities at fair value | $ 12.3 | $ 10.0 |
Fair Value Measurements - Assets and Liabilities are Measured at Fair Value on Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands |
Jun. 30, 2025 |
Mar. 31, 2025 |
||
---|---|---|---|---|
Fair Value Measurements [Abstract] | ||||
Available-for-sale marketable securities | $ 1,803,035 | $ 0 | ||
Total assets at fair value | 3,230,521 | 2,924,396 | ||
Liability instruments measured at fair value | [1] | 12,310 | 9,981 | |
Total liabilities at fair value | 12,310 | 9,981 | ||
Level 1 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Available-for-sale marketable securities | 0 | 0 | ||
Total assets at fair value | 1,263,711 | 2,757,035 | ||
Liability instruments measured at fair value | [1] | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | ||
Level 2 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Available-for-sale marketable securities | 1,803,035 | 0 | ||
Total assets at fair value | 1,803,035 | 0 | ||
Liability instruments measured at fair value | [1] | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | ||
Level 3 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Available-for-sale marketable securities | 0 | 0 | ||
Total assets at fair value | 163,775 | 167,361 | ||
Liability instruments measured at fair value | [1] | 12,310 | 9,981 | |
Total liabilities at fair value | 12,310 | 9,981 | ||
Money Market Funds [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Money market funds | 1,143,672 | 2,621,457 | ||
Money Market Funds [Member] | Level 1 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Money market funds | 1,143,672 | 2,621,457 | ||
Money Market Funds [Member] | Level 2 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Money market funds | 0 | 0 | ||
Money Market Funds [Member] | Level 3 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Money market funds | 0 | 0 | ||
Common Shares [Member] | Datavant [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Investment | 163,775 | 167,361 | ||
Common Shares [Member] | Datavant [Member] | Level 1 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Investment | 0 | 0 | ||
Common Shares [Member] | Datavant [Member] | Level 2 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Investment | 0 | 0 | ||
Common Shares [Member] | Datavant [Member] | Level 3 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Investment | 163,775 | 167,361 | ||
Common Shares [Member] | Arbutus Biopharma Corporation [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Investment | 120,039 | 135,578 | ||
Common Shares [Member] | Arbutus Biopharma Corporation [Member] | Level 1 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Investment | 120,039 | 135,578 | ||
Common Shares [Member] | Arbutus Biopharma Corporation [Member] | Level 2 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Investment | 0 | 0 | ||
Common Shares [Member] | Arbutus Biopharma Corporation [Member] | Level 3 [Member] | ||||
Fair Value Measurements [Abstract] | ||||
Investment | $ 0 | $ 0 | ||
|
Fair Value Measurements - Changes in Fair Value of the Level 3 Assets (Details) - Level 3 [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Fair Value Measurements [Abstract] | ||
Beginning Balance | $ 167,361 | $ 147,526 |
Changes in fair value of investment in Datavant, included in net (income) loss | $ (3,586) | $ (4,586) |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Fair Value of Debt and Liability Instruments | Gain (Loss) on Fair Value of Debt and Liability Instruments |
Ending Balance | $ 163,775 | $ 142,940 |
Fair Value Measurements - Changes in Fair Value of the Level 3 Liabilities (Details) - Level 3 [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Fair Value Measurements [Abstract] | ||
Balance at beginning of period | $ 9,981 | $ 25,737 |
Changes in fair value of liability instruments, included in net income (loss) | $ 2,329 | $ 1,150 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Fair Value of Debt and Liability Instruments | Gain (Loss) on Fair Value of Debt and Liability Instruments |
Balance at end of period | $ 12,310 | $ 26,887 |
Fair Value Measurements - Investment in Datavant (Details) - Datavant [Member] |
Jun. 30, 2025 |
Mar. 31, 2025 |
---|---|---|
Volatility [Member] | ||
Fair Value Measurements [Abstract] | ||
Investment in equity securities, measurement input | 100 | 110 |
Discount Rate [Member] | ||
Fair Value Measurements [Abstract] | ||
Investment in equity securities, measurement input | 13 | 13 |
Fair Value Measurements - Earn-Out Shares (Details) - Earn-Out Shares [Member] |
Jun. 30, 2025 |
Mar. 31, 2025 |
---|---|---|
Volatility [Member] | ||
Fair Value Measurements [Abstract] | ||
Earn-out share, measurement input | 36.50% | 38.40% |
Risk-free Rate [Member] | ||
Fair Value Measurements [Abstract] | ||
Earn-out share, measurement input | 3.90% | 3.96% |
Net (Loss) Income per Common Share - Net (Loss) Income per Common Share (Details) - shares |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
|||
Stock Options and Performance Stock Options [Member] | ||||
Net (Loss) Income per Common Share [Abstract] | ||||
Potentially dilutive securities (in Shares) | 135,593,216 | 54,648,258 | ||
Restricted Stock Units and Performance Stock Units (Non-vested) [Member] | ||||
Net (Loss) Income per Common Share [Abstract] | ||||
Potentially dilutive securities (in Shares) | 53,111,118 | 5,422,465 | ||
March 2020 CVARs [Member] | ||||
Net (Loss) Income per Common Share [Abstract] | ||||
Potentially dilutive securities (in Shares) | [1] | 17,548,368 | 17,548,368 | |
November 2021 CVARs (Non-vested) [Member] | ||||
Net (Loss) Income per Common Share [Abstract] | ||||
Potentially dilutive securities (in Shares) | 0 | 200,722 | ||
Restricted Common Stock (Non-vested) [Member] | ||||
Net (Loss) Income per Common Share [Abstract] | ||||
Potentially dilutive securities (in Shares) | 0 | 255,911 | ||
Earn-Out Shares (Non-vested) [Member] | ||||
Net (Loss) Income per Common Share [Abstract] | ||||
Potentially dilutive securities (in Shares) | 3,080,387 | 3,080,387 | ||
Other Stock Based Awards and Instruments Issued [Member] | ||||
Net (Loss) Income per Common Share [Abstract] | ||||
Potentially dilutive securities (in Shares) | 4,485,265 | 3,924,305 | ||
|
Segment Information (Details) |
3 Months Ended |
---|---|
Jun. 30, 2025
Segment
| |
Segment Information [Abstract] | |
Number of Operating Segments | 1 |
Number of Reportable Segments | 1 |
Segment Information - Significant Segment Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2025 |
Jun. 30, 2024 |
|
Segment Information [Abstract] | ||
Revenue | $ 2,170 | $ 7,990 |
Less: | ||
Cost of revenues | 154 | 213 |
Research and development expenses | 152,919 | 120,507 |
Share-based compensation | 82,178 | 50,191 |
General and administrative expenses | 134,019 | 99,892 |
Gain on sale of Telavant net assets | 0 | (110,387) |
Change in fair value of investments | 19,125 | (15,226) |
Change in fair value of liability instruments | 2,329 | 1,150 |
Interest income | (48,322) | (72,127) |
Other expense, net | 11,208 | 3,608 |
Income tax expense | 4,649 | 11,963 |
Income from discontinued operations, net of tax | 0 | (89,093) |
Net (loss) income | (273,911) | 57,490 |
Research and Development Expense [Member] | ||
Less: | ||
Share-based compensation | 11,099 | 10,532 |
Personnel Related Expenses [Member] | ||
Less: | ||
Research and development expenses | 42,530 | 31,545 |
Other Research and Development Expenses [Member] | ||
Less: | ||
Research and development expenses | 9,637 | 8,548 |
General and Administrative Expense [Member] | ||
Less: | ||
Share-based compensation | 71,079 | 36,841 |
Personnel Related Expenses, General and Administrative [Member] | ||
Less: | ||
General and administrative expenses | 30,110 | 29,697 |
Other General and Administrative Expenses [Member] | ||
Less: | ||
General and administrative expenses | 32,830 | 33,354 |
Anti-FcRn Franchise-Neurological Diseases [Member] | ||
Less: | ||
Research and development expenses | 20,937 | 18,479 |
Anti-FcRn Franchise-Endocrine Diseases [Member] | ||
Less: | ||
Research and development expenses | 19,329 | 15,913 |
Anti-FcRn Franchise-Rheumatology Diseases [Member] | ||
Less: | ||
Research and development expenses | 8,209 | 0 |
Anti-FcRn Franchise-Dermatology Diseases [Member] | ||
Less: | ||
Research and development expenses | 5,145 | 0 |
Anti-FcRn Franchise-Other Clinical and Nonclinical [Member] | ||
Less: | ||
Research and development expenses | 2,392 | 6,401 |
Brepocitinib [Member] | ||
Less: | ||
Research and development expenses | 15,020 | 10,594 |
Mosliciguat [Member] | ||
Less: | ||
Research and development expenses | 8,385 | 2,980 |
Other Development and Discovery Programs [Member] | ||
Less: | ||
Research and development expenses | $ 10,236 | $ 15,515 |
Subsequent Events - Awards Approved (Details) - Subsequent Event [Member] - RSI President and Vant Chair [Member] $ in Thousands |
1 Months Ended |
---|---|
Jul. 31, 2025
USD ($)
shares
| |
Subsequent Events [Abstract] | |
Cash awards (in Dollars) | $ | $ 7,500 |
Performance Shares [Member] | |
Subsequent Events [Abstract] | |
Granted (in Shares) | 11,900,000,000 |
Restricted Stock Units (RSUs) [Member] | |
Subsequent Events [Abstract] | |
Granted (in Shares) | 1,836,547,000 |
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