Myovant stands in the way of Sumitomo's consolidation

Sumitomo, increasingly reliant on the Roivant stable to fill a void left by patent expiries, is trying to take another Roivant-derived entity private. But Myovant, the entity in question, whose remaining 48% stake Sumitomo wants to buy for $1.2bn, will not go down without a fight: Myovant says the bid “significantly undervalues” its business, and the basis for this view is obvious: Sumitomo’s Sumitovant subsidiary is offering $22.75 per Myovant share and, while this is 27% above Friday’s close, Myovant stock was trading 18% higher just over a year ago. Myovant is one of several entities formed by Roivant to focus on other companies’ cast-offs, and in 2019 Sumitomo paid $3bn for Roivant’s stakes in five of these. This comprised 100% ownership of Enzyvant, Spirovant and Altavant, and 75% and 46% respective stakes in Urovant and Myovant. Sumitovant bought out the Urovant minority interest in 2020. 100% ownership of Myovant would give the Japanese group full control over Orgovyx/Myfembree, a drug partnered with Pfizer and forecast by the sellside to become a blockbuster. Two questions remain: will any other buyers – like Pfizer, say – now come forward, and by how much will Sumitomo need to raise its offer?

Sumitovant's portfolio
Company Initial ownership* Subsequent move Selected projects Status
Enzyvant 100% NA Rethymic Approved for paediatric congenital athymia, after earlier CRL
Altavant 100% NA Rodatristat Ph2 for pulmonary arterial hypertension
Spirovant 100% NA Spiro-101 Preclinical for cystic fibrosis
Urovant 75% Remaining 25% interest acquired at $584m valuation Gemtesa Approved for overactive bladder
URO-902 Toplined positive in ph2 for overactive bladder
Myovant 46% In-market purchases took ownership to 52%; bid to buy remaining 48% at $2.4bn valuation Relugolix Approved for prostate cancer as Orgovyx
Approved for uterine fibroids as Myfembree
Approved for endometriosis pain as Myfembree
Note: excludes undisclosed options over six other entities; *under 2019 acquisition of Roivant's stakes for $3bn. Source: product labels & Evaluate Pharma.

Related Topics

Share This Article