Myovant Sciences, Inc. MYOV announced late Sunday a deal to be acquired by Japanese pharmaceutical company Sumitomo Pharma Co., Ltd’s DNPUF unit Sumitovant Biopharma.
The Deal Terms: The agreement provides for all of the Myovant shares to be acquired at $27 per share in cash, or $1.7 billion in total. The per-share value represents a 50% premium to Myovant’s closing price on Sept. 30, the last trading prior to the Japanese company’s non-binding proposal. Sumitovant currently beneficially owns 52% of Myovant shares.
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This is an about-face from Myovant’s stance in early October when its board refused to recommend Sumitovant’s preliminary offer that valued the company at $22.75 per share.
The deal has been approved by the boards of Sumitovant and its parent Sumitomo Pharma and has also been unanimously recommended by a special committee of the independent directors of Myovant. 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 has been approved for treating prostate cancer and the latter for endometriosis and uterine fibroids.
The company has an ongoing collaboration with Pfizer, Inc. PFE to market Myfembree in the U.S. and Canada.
“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,” said Myovant CEO David Marek.
Price Action: Myovant shares closed Friday’s session at $24.54, up 0.95%, according to Benzinga Pro data.
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Image and article originally from www.benzinga.com. Read the original article here.