Myovant Sciences, Inc. MYOV announced late Sunday a deal to be acquired by a Japanese pharmaceutical company Sumitomo Pharma Co.,Ltd DNPUF Sumitovant Biopharma unit.
The terms and conditions: The agreement provides for all Myovant shares to be acquired at a price of $27 per share in cash or a total of $1.7 billion. The value per share represents a 50% premium to Myovant’s closing price on September 30, the last trading day before the Japanese company’s non-binding offer. Sumitovant currently economically owns 52% of Myovant shares.
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This is a reversal from Myovant’s stance in early October when this was the case declined to recommend Sumitovant’s preliminary offer that valued the company at $22.75 per share.
The transaction was approved by the boards of directors of Sumitovant and its parent company, Sumitomo Pharma, and was also unanimously recommended by a special committee of Myovant’s independent directors. The transaction is expected to close in the first quarter of 2023, subject to customary closing conditions.
The deal logic: Myovant has two commercial products – Orgovyx and Myfembree. The former is approved for the treatment of prostate cancer and the latter for endometriosis and uterine fibroids.
The company has an ongoing cooperation with Pfizer, Inc. PFE to market Myfembree in the US and Canada.
“With Sumitovant’s expertise and resources to best support Myovant and our people, we can do more to expand the impact of our differentiated therapies, advance our clinical programs and work to break down barriers to accessing quality care for those of to eliminate the patients we care for. said Myovant CEO David Marek.
Price promotion: Myovant shares closed Friday’s session at $24.54, up 0.95% Benzinga Pro data.
Continue reading: FDA Approves Treatment of Endometriosis-Related Pain by Myovant Sciences/Pfizer
