Sumitovant, which holds about 52% of Myovant, has proposed to acquire the remaining shares of the company at a price of $22.75 per share in cash, indicating an equity value of $2.4bn and an enterprise value of $2.5bn for Myovant
Myovant rejects Sumitovant’s acquisition proposal. (Credit: Towfiqu barbhuiya on Unsplash)
Myovant Sciences, a biopharmaceutical company focused on women’s disorders, has rejected the takeover proposal from Sumitovant Biopharma and its parent Sumitomo Pharma.
Sumitovant Biopharma currently holds about 52% of the outstanding shares in Myovant and has proposed to acquire the remaining shares for $22.75 per share in cash.
The proposed transaction price indicates an equity value of $2.4bn and an enterprise value of $2.5bn for Myovant.
It is around 27% premium to the Swiss biopharma company’s closing share price on 30 September 2022, and around 31% premium to its 60-day volume weighted average price.
Sumitovant Biopharma in its statement said: “Both Sumitovant and Sumitomo Pharma have enjoyed a collaborative and successful relationship with Myovant that has facilitated the continued development and commercialization of Orgovyx and Myfembree in prostate cancer and women’s health in and outside of the U.S.
“Further, Sumitovant and Sumitomo Pharma believe that the Proposal is financially compelling and will create significant and immediate value for Myovant’s shareholders.”
Myovant board of directors has created a special committee of independent directors (Special Committee) to evaluate the proposal and possible alternatives.
The Special Committee, together with its financial and legal advisors, has reviewed the proposal and concluded that the transaction significantly undervalues the company.
Myovant said that the proposed transaction is not in the best interests of the company or its shareholders.
Myovant stated: “The Special Committee remains open to considering any improved proposal that reflects the full and fair value of the company and is otherwise in the best interests of the company and its shareholders and is prepared to engage further with Sumitomo regarding any such proposal.
“There can be no assurance as to whether an agreement relating to any proposed transaction will be reached or as to the terms thereof if an agreement is reached.
“The company does not intend to comment further or disclose any developments regarding the Special Committee’s consideration of the Proposal unless and until it deems further disclosure is appropriate or required.”