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Revisiting Myovant...

myovant oct04 lt

It's official - Myovant Sciences Ltd. (MYOV) has received a buyout offer from its majority shareholder Sumitovant and the same has been turned down for now.

The preliminary, non-binding proposal from Sumitomo Pharma Co., Ltd. and its wholly-owned subsidiary Sumitovant Biopharma Ltd. to acquire the remaining shares of Myovant that Sumitovant does not currently hold has priced the company at $22.75 per share in cash. Sumitovant currently holds roughly 52% of the outstanding shares of Myovant.

The proposed offer price represents an equity value for Myovant of $2.4 billion and an enterprise value of $2.5 billion.

Myovant is not ready to accept the buyout offer for now as it feels the proposed transaction significantly undervalues the company. However, the company has revealed that it remains open to considering any improved proposal. And that means Sumitomo/Sumitovant will now have to increase its offer price if it wants to buy Myovant.

We had alerted our subscribers to MYOV on July 28, 2022 when it was trading around $12. (Our report titled "Have You Added Myovant To Your Watchlist Yet?").

Myovant has two approved drugs - Myfembree, indicated for uterine fibroids & endometriosis, and Orgovyx, indicated for the treatment of adult patients with advanced prostate cancer.

For the first quarter of fiscal year 2022 (three months ended June 30, 2022), net product revenue for Orgovyx in the U.S. was $36.0 million while Myfembree generated $4.0 million. This compares with Orgovyx net product revenue of $10.5 million and Myfembree net product revenue of $1.1 million in the year-ago period. (Myfembree was launched only in mid-June 2021).

With Myovant rejecting the initial bid and being open to improved proposals, it remains to be seen whether Sumitomo/Sumitovant will sweeten their offer price or a bidding war will break out.

MYOV touched a new 52-week high of $25.04 in intraday trading Monday, before closing at $24.44, up 36.08%.

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