Myovant Turns Down $2.4 Billion Buyout Bid From Sumitomo
In a bold move, UK-based Myovant Sciences rejected a $2.4 billion takeover bid from the company’s majority shareholder, Japan-based Sumitomo Pharma. The Japanese company already owns 52% of Myovant’s shares and offered a 27% premium on the stock’s closing price on Friday. Myovant claims it is still open to negotiations, but for now, the company’s stock skyrocketed to the highest level all year.
Holding On for Something Better
Myovant took the weekend to form a special committee comprised of independent directors and financial advisors to weigh the offer. After a quick deliberation, the company said the proposal “significantly undervalues the Company and, therefore, is not in the best interests of the Company or its minority shareholders.”
Still, the UK pharma left room for further discussions with Sumitomo, stating it may be willing to accept an offer that reflects the full and fair market of the company. While Sumitomo’s original offer of $22.75 per share at the time seemed generous enough, since Myovant published its rejection, its shares rose to $24.44 per share.
Sumitomo first tied itself up with Myovant in 2019 when it laid down $3 billion to Roivant Pharma to acquire five of its Vant startups, one of which was Myovant. Since then, the FDA approved two drugs from Myovant, holding Sumitomo’s attention.
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Myovant’s Success So Far
Founded in 2016, Myovant rose to prominence quickly after its prostate cancer drug, Orgovyx, gained FDA approval just four years after the company’s establishment. The drug, developed alongside Pfizer, generated $83 million last year.
More recently, the FDA approved Myovant’s Myfembree for heavy menstrual bleeding linked to uterine fibroids in May last year. The drug gained another indication in August this year, addressing moderate to severe pain in patients with endometriosis. Sumitomo expressed interest and admiration of the projects in its buyout offer, stating it is “impressed with the culture and significant accomplishments of Myovant’s employees.”
Along with two products under its belt, Myovant is developing another therapy designed to treat infertility. That candidate is currently in Phase 2 trials.
Myovant’s rejection of Sumitomo’s $2.4 billion buyout bid was a shock to most, but the young company has grander ambitions in mind. The company said it is still open to negotiations that benefit the company and its minority shareholders more. Even without a buyout, though, the company seems to be in good standing with two approved drugs on the market in its six-year lifespan.
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