Roivant Sciences Ltd. — financial distress indicators
Financial-health summary
Roivant Sciences Ltd.'s reported numbers place it in the 'Watch' financial-health band (distress score 35/100). The main indicators are revenue collapse, operations consume cash and losses in 2 of the last 3 years. In its favour: large market capitalisation — strong access to capital markets.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Revenue changed -72% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating margin fell from 13747% to -6236% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Large market capitalisation — strong access to capital markets.
📰 Recent news scan
- IMVT, ROIV Stocks Slide As Argenx Sjögren’s Trial Failure Hits Drug Class - StocktwitsGoogle News · 2026-10-08
- Roivant Sciences Ltd. (ROIV) Stock Price, News, Quote & History - Yahoo! Finance CanadaGoogle News · 2026-10-07
- How $950 Million Settlement Will Impact Roivant Sciences Stock (ROIV) - Simply Wall StreetGoogle News · 2026-10-07
- ROIV Oct 2026 44.000 call (ROIV261016C00044000) stock price, news, quote and history - Yahoo Finance UKGoogle News · 2026-10-07
- Roivant Sciences (ROIV) director exercises $4.46 options and sells 17,750 shares. - Stock TitanGoogle News · 2026-10-05
- Through a stock grant settlement, Frank Torti acquires 40,309 Roivant Sciences (ROIV) shares. - Stock TitanGoogle News · 2026-10-03
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Roivant Sciences Ltd.'s financial-health indicators show?
As of 2026-10-08, Roivant Sciences Ltd.'s public financial data places it in the 'Watch' band with a distress score of 35/100, driven by revenue collapse, operations consume cash and losses in 2 of the last 3 years. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Roivant Sciences Ltd.'s financial distress score?
35/100 ('Watch').
What works in Roivant Sciences Ltd.'s favour?
Large market capitalisation — strong access to capital markets.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Pharma & Biotech companies with distress indicators
- ABVC BioPharma, Inc. (ABVC)Very weak 100/100
- AKAN (AKAN)Very weak 100/100
- Endovia Health Sciences, Inc. (EDVA)Very weak 100/100
- Elicio Therapeutics, Inc. (ELTX)Very weak 100/100
- IM Cannabis Corp. (IMCC)Very weak 100/100
- NeuroSense Therapeutics Ltd. (NRSN)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.