Japanese firm acquires US drugmaker after increasing offer
The deal sees Sumitomo acquiring ownership of cancer and uterine fibroid treatments | Myovant initially rejected low offer that “undervalued” the company.
Japan’s Sumitomo Pharma is set to acquire the remaining shares in Myovant Sciences for a total of $1.7 billion, after the US drugmaker rejected a lower offer.
Sumitovant Biopharma, a subsidiary of Sumitomo, will acquire all outstanding shares of Myovant for $27 per share. In total, this values the company at $2.9 billion on a fully diluted basis.
Earlier this month, Sumitomo offered $22.75 per share. However, Myovant rejected the offer, stating that it “significantly undervalues” the company but that it was open to considering any improved proposal.
As part of the acquisition, Sumitomo gains access to Orgovyx (relugolix) and Myfembree (relugolix, estradiol, and norethindrone acetate).
Orgovyx is prescription medicine used in adults for the treatment of advanced prostate cancer, while Myfembree is a treatment for heavy menstrual bleeding associated with uterine fibroids
Myrtle Potter, CEO of Sumitovant, said: “This transaction represents an industry-leading opportunity to combine unique expertise, platforms, and resources to successfully commercialise products in Myovant's programme and to accelerate development of a robust pipeline addressing patient needs in women's health and prostate cancer.”
Myovant was founded in 2016 and has executed five successful phase 3 clinical trials across hormone-sensitive oncology and women's health, leading to five regulatory approvals in the US and Europe.
It is currently conducting a phase 3 study to evaluate the prevention of pregnancy in women with uterine fibroids or endometriosis.
Myovant is also developing MVT-602, an investigational oligopeptide kisspeptin-1 receptor agonist, which has completed a Phase 2a study for female infertility as part of assisted reproduction.
David Marek, CEO of Myovant, said: “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 programmes, and work to remove barriers to access quality care for the patients we serve.”
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