Axovant is not among subsidiaries referenced in Sumitomo-Roivant deal - Leerink

Sio Gene Therapies

06/09/2019 17:05

** Drug developer Axovant Gene Therapies  AXGT.O  is not
among the five subsidiaries that Japanese pharma co Sumitomo
Dainippon Pharma Co  4506.T  is taking an interest in, brokerage
SVB Leerink says
    ** Sumitomo said it would pay $3 bln for 10% stake in Swiss
drugmaker Roivant Sciences and interests in five of its
biopharma businesses  urn:newsml:reuters.com:*:nL3N25X1GP
    ** Leerink analyst Mani Foroohar says Sumitomo will not have
option to directly acquire AXGT, after speaking with management 
    ** However, Foroohar notes Sumitomo will have right of first
refusal if another entity steps in and offers to acquire Roivant
shares in AXGT
    ** Roivant is majority stakeholder in several companies
including Myovant Sciences Ltd  MYOV.N , Urovant Sciences
 UROV.O  and Axovant 
    ** Given current market cap of ~$160 mln, AXGT was unlikely
to obtain fair value for gene therapy programs, so it is
unsurprising it is not included in this alliance - Leerink
    ** Co has a catalyst-rich second half the year ahead and it
is remarkably undervalued - Leerink
    ** Up to Thursday's close, AXGT stock had fallen 11.5% YTD

 (Reporting by Tamara Mathias in Bengaluru)
 ((Tamara.Mathias@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 1208;))