Myovant Sciences agreed to be acquired by Sumitovant Biopharma for $2.9 billion - three weeks after turning down a previous offer.
Myovant CEO David Marek/courtesy Myovant Sciences
Shares of Myovant Sciences rose in premarket trading Monday after the company agreed to be acquired by Sumitovant Biopharma for $2.9 billion - three weeks after turning down a previous offer.
The acquisition was announced Sunday after Myovant turned down a $2.5 billion bid from Sumitovant in early October. A committee of Myovant’s independent investors said the initial offer had significantly undervalued the company. Myovant will now become a wholly-owned subsidiary of Sumitomo Pharma, the parent company of Sumitovant.
In its announcement, Myovant did not indicate any difference between the original offer and Sunday’s announcement beyond the slight increase in price.
In a brief statement, Mark Guinan, chairman of the board of directors’ special committee, said Myovant came to the agreement following “careful consideration and consultation” with its legal and financial advisors. Guinan added that Sumitovant offer provides “immediate and compelling value to Myovant’s minority shareholders” and also positions the company for continued growth.
Myovant has two FDA-approved therapeutics, Orgovyx and Myfembree. In September, Myovant Sciences and partner Pfizer won a second approval for Myfembree (relugolix), a treatment for the management of moderate to severe pain associated with endometriosis.
Myfembree was initially approved in 2021 for the treatment of heavy menstrual bleeding associated with uterine fibroids in premenopausal women. In 2020 the company won approval for Orgovyx (relugolix), an oral hormone therapy for prostate cancer.
In a brief statement, David Marek, chief executive officer of Myovant, said the Sumitovant resources and expertise will enable the expansion of the impact of Myfembree and Orgovyx, and also advance the company’s ongoing clinical programs.
These include multiple trials in prostate cancer with Orgovyx, as well as a study of a digital platform and supportive therapy in androgen deprivation (STAND-T) in prostate cancer.
Sumitovant is the largest shareholder in Myovant, owning about 52% of company stock. Over the past several years, Sumitomo has invested approximately $600 million into Myovant in order to support the development of Myfembree.
Hiroshi Nomura, chief executive officer of Sumitomo Pharma, noted the combination of Sumitovant and Myovant will “strengthen Myovant’s product capabilities.”
Myrtle Potter, CEO of Sumitovant, concurred.
“This transaction represents an industry-leading opportunity to combine unique expertise, platforms and resources to successfully commercialize products in Myovant’s program and to accelerate development of a robust pipeline addressing patient needs in women’s health and prostate cancer,” Potter said in a statement.
Under financial terms of the deal, Sumitovant will acquire all outstanding shares of Myovant for $27 per share. The stock closed at $24.54 on Oct. 21.
The offer represents a premium of approximately 50% to Myovant’s closing share price on Sept. 30, which was the last day of trading prior to Sumitovant’s initial offer to acquire Myovant. In premarket trading, shares of Myovant have risen to $26.57. The acquisition is anticipated to close in the first quarter of 2023.
