Myovant inventory pops as Sumitovant to accumulate remaining stake for $1.7B

Japan’s Sumitovant Biopharma is buying the remaining 48% stake in Myovant Sciences (NYSE:MYOV) for $1.7B, which it at present doesn’t personal to take the London-based girls’s well being firm non-public.

Sumitovant, a unit of Sumitomo Pharma (OTCPK:DNPUF), will purchase all excellent shares of Myovant not already owned by the corporate for $27 per share in money. This corresponds to a complete transaction worth of $1.7B, and a complete firm worth of $2.9B.

Sumitovant famous that it at present beneficially owns 52% of Myovant.

“By making Myovant an entirely owned subsidiary of Sumitovant, we imagine that we can speed up implementation of administration methods that make full use of money move generated by ORGOVYX and MYFEMBREE for sustained development of the Sumitomo Pharma Group,” stated Sumitomo CEO Hiroshi Nomura.

The businesses stated the deal was really useful by particular committee of Myovant’s impartial administrators and permitted by myovant’s board.

The transaction might be financed by way of a mix of money available and exterior debt financing.

The transaction is predicted to shut in Q1 2023, topic to circumstances, together with regulatory approvals and approval of by Myovant shareholders.

After the merger is full, Myovant’s shares will now not be listed on the New York Inventory Change.

MYOV +7.58% to $26.40 premarket Oct. 24