Sumitovant Biopharma to take full ownership of Myovant Sciences for $1.7bn
Sumitovant Biopharma, a subsidiary of Japan-based Sumitomo Pharma (previously Sumitomo Dainippon Pharma), is set to take full ownership of Myovant Sciences, an American publicly-listed biopharma company, in a deal worth $1.7 billion.
In this connection, Sumitovant Biopharma will offer a price of $27 per share in cash to acquire the remaining 48% stake that it previously didn’t own in Myovant Sciences.
The deal values 100% of the New York Stock Exchange (NYSE) listed Myovant Sciences at $2.9 billion.
Established in 2016, the American biopharma company is said to have executed five successful phase 3 clinical trials in hormone-sensitive oncology and women’s health, which resulted in five regulatory approvals in the US and Europe.
Hiroshi Nomura — Sumitomo Pharma CEO said: “Myovant’s two products, ORGOVYX and MYFEMBREE have substantial potential. We believe the combination of Sumitovant and Myovant will strengthen Myovant’s product capabilities and help continue to deliver innovative therapies addressing unmet patient needs in prostate cancer and women’s health.
“By making Myovant a wholly owned subsidiary of Sumitovant, we believe that we will be able to accelerate implementation of management strategies that make full use of cash flow generated by ORGOVYX and MYFEMBREE for sustained growth of the Sumitomo Pharma Group.”
Sumitovant Biopharma to take full ownership of Myovant Sciences for $1.7bn. Photo courtesy of Kirakirameister/Wikipedia.org.
Upon closing of the deal, Myovant Sciences will become a fully-owned subsidiary of Sumitovant Biopharma and the former’s shares will be delisted from the NYSE.
The deal has been approved by the boards of Sumitovant Biopharma and Sumitomo Pharma and recommended unanimously by Myovant Sciences’ special committee of the independent directors.
David Marek — Myovant Sciences CEO said: “We are pleased to have reached an agreement with Sumitovant and Sumitomo Pharma that recognizes the remarkable success Myovant has achieved.
“With the expertise and resources of Sumitovant to best support Myovant, and our employees, we can do more to expand the impact of our differentiated therapies, advance our clinical programs, and work to remove barriers to access quality care for the patients we serve.”
The deal, which is expected to regulatory approvals, Myovant Sciences’ shareholders’ approval, and other conditions, is expected to close in Q1 2023.