ROIV: Late Stage Pipeline And LNP Litigation Will Drive Upside Into 2026

Analysts have nudged their blended fair value estimate for Roivant Sciences higher, lifting the implied price target by about $1 to approximately $25.64. They are factoring in a richer future earnings multiple and growing confidence in the company’s late stage pipeline and ongoing litigation optionality, despite slightly softer margin and growth assumptions.

Analyst Commentary

Recent Street research continues to frame Roivant Sciences as a high beta, execution driven story, with valuation increasingly linked to the durability of its immunology franchises and the outcome of lipid nanoparticle, or LNP, litigation tied to Moderna. While most analysts are lifting price targets alongside a tightening range of fundamental assumptions, the dispersion in views around timelines and risk remains a key driver of debate.

Bullish Takeaways

• Bullish analysts are raising fair value estimates as successful Phase 3 dermatomyositis data and positive brepocitinib readouts support a clearer commercial ramp into the late 2020s. This underlines confidence in management’s ability to execute on launches.
• Upward revisions to price targets in the low to mid $20s reflect growing conviction that Roivant’s late stage pipeline, particularly batoclimab and brepocitinib, can sustain multi year revenue growth and justify a premium growth multiple.
• Several models now explicitly embed upside from LNP litigation against Moderna. The strengthened liquidity profile at Moderna is viewed as enhancing the probability of a meaningful royalty stream or settlement that is accretive to Roivant’s long term cash flows.
• Upcoming investor day events and anticipated 2026 data catalysts are viewed as structured milestones that could progressively de risk the story, offering a more visible path to bridging the gap between current trading levels and raised targets.

Bearish Takeaways

• Bearish analysts, or those taking a more conservative stance, highlight the delay of batoclimab Phase 3 thyroid eye disease data into 2026 as a pushout of key value inflection points. They note this could pressure near term sentiment and extend the timeline to monetization.
• There is caution that a growing portion of the equity value is now implicitly tied to binary LNP litigation outcomes, introducing legal and timing risk that may not be fully reflected in current multiples.
• Some valuation frameworks flag execution risk around scaling commercialization of brepocitinib and other assets. These frameworks note that any missteps on pricing, reimbursement, or competitive positioning could undermine assumed peak sales trajectories.
• A subset of models remains anchored by more modest margin improvement and operating leverage assumptions. This suggests that even with favorable trial outcomes, upside could be tempered if Roivant needs to reinvest heavily in its platform and pipeline to sustain growth.

What's in the News

• Roivant and Priovant reported positive Phase 3 VALOR results for brepocitinib in dermatomyositis, with a strong efficacy signal and a safety profile consistent with prior trials, and plan to file a New Drug Application in the first half of 2026 (Key Developments).
• Management updated timing across four key programs, including a brepocitinib NDA in dermatomyositis now expected in early 2026, topline data from the non infectious uveitis Phase 3 program anticipated in 2026, and continued progress for mosliciguat in pulmonary hypertension associated with interstitial lung disease (Key Developments).
• Pulmovant, a Roivant subsidiary, remains on track to report mosliciguat Phase 2 topline data in the second half of 2026 and is preparing to initiate a Phase 2 study in combination with inhaled treprostinil in patients with pulmonary hypertension associated with interstitial lung disease (Key Developments).
• In LNP related litigation, a jury trial against Moderna in the United States has been scheduled for March 2026, with initial hearings in ex US Moderna and Pfizer/BioNTech cases expected during 2026 (Key Developments).
• Roivant completed repurchases of 270,000 shares for approximately $3.15 million under its August 2025 buyback authorization, with no additional shares repurchased in the third quarter of 2025 (Key Developments).

Valuation Changes

• Fair Value Estimate has risen slightly, increasing from about $24.55 to approximately $25.64 per share.
• Discount Rate is essentially unchanged, edging up marginally from 7.44 percent to about 7.44 percent on updated assumptions.
• Revenue Growth Forecast has been trimmed slightly, moving from roughly 326.1 percent to about 325.3 percent over the modeled horizon.
• Net Profit Margin Outlook has been reduced, falling from around 4.29 percent to approximately 3.46 percent, reflecting more conservative profitability expectations.
• Future P/E Multiple has risen meaningfully, increasing from roughly 290.4x to about 378.3x, signaling a richer valuation placed on prospective earnings.