Japan's Sumitomo Pharma to buy rest of Myovant in sweetened deal (updated)

Sumitomo Pharma

24/10/2022 12:00

(Adds MYOV shares, context for deal, drug details for MYOV)
       Oct 24 (Reuters) - Japan's Sumitomo Pharma Co  4506.T 
and its subsidiary said on Sunday they would purchase the
remaining shares of Myovant Sciences  MYOV.N  at an improved $27
per share, after the U.S. drugmaker rejected a lower offer
earlier this month.
    Sumitomo and its wholly owned unit, Sumitovant Biopharma,
hold about 52% of Myovant's outstanding stock and will acquire
the rest in a deal that values Myovant at about $2.59 billion,
the companies said in a statement.
    Myovant had rejected Sumitomo's previous proposal to acquire
the remaining shares at $22.75 each, saying the bid
significantly undervalued the company.  urn:newsml:reuters.com:*:nL4N3130JZ
     The deal provides Sumitomo access to Myovant's clinical
assets being developed for preventing pregnancy and treating
infertility in women, in addition to the company's FDA-approved
drugs for prostate cancer and managing menstrual bleeding.    
    Sumitomo's shares rose 0.2% on Monday in Tokyo, while
Myovant Sciences jumped nearly 8% in U.S. premarket trading as
the new offer is at a premium of 10% to the stock's last close. 
    The two companies have been working together since 2019,
when Sumitomo Pharma agreed to pay $3 billion for a 10% stake in
Swiss drugmaker Roivant Sciences Ltd and a controlling interest
in Myovant. The stake gave the Japanese company a drug pipeline
for treatments of prostate cancer, urinary diseases, pediatric
illnesses and respiratory ailments. 
    For the quarter ended June 30, 2022 Myovant reported $36
million in U.S. sales of its prostate cancer drug Orgovyx, and
$4 million in sales of Myfembree which is used to help manage
heavy menstrual bleeding. 
    Myovant's contraceptive medicine, which it is developing in
collaboration with Pfizer  PFE.N , is currently being tested in
a late-stage study.
    The deal will be funded through cash on hand and external
debt and is not subject to a financing condition, the companies
said. 
 (Reporting by Ann Maria Shibu and Bhanvi Satija in Bengaluru,
Rocky Swift in Tokyo; Editing by Shailesh Kuber and Vinay
Dwivedi)
 ((AnnMaria.Shibu@thomsonreuters.com; +1 646 223 8780;  + 91 80
6749 2795;))