Myovant inventory trades above $22.75/share as analyst see seemingly larger bid (NYSE:MYOV)

Myovant Sciences (NYSE:MYOV) jumped 32% and traded above Sumitovant Biopharma’s $22.75/share provide as analysts see the potential for an elevated bid and doable curiosity from associate Pfizer (PFE).

“In our view, we expect Sumitovant’s provide seems considerably opportunistic, and bullish traders might have the ability to argue that Myovant may promote for a premium to the preliminary $22.75/share provide,” SVB Leerink analyst Roanna Ruiz, who has an outperform score and $23 value goal on MYOV wrote in a word on Monday.

Myovant (MYOV) disclosed Sunday {that a} particular committee of its board rejected a $2.4 billion, or $22.75/share, provide from Sumitovant Biopharma to purchase the remaining shares of the biopharma firm it does not already personal. Sumitovant presently holds roughly 52% of the excellent shares of Myovant (MYOV). The provide represents a 27% premium to MYOV’s closing value on Friday.

Myovant (MYOV) could also be in an excellent place to barter a greater deal because of a number of potential “worth drivers” over the following yr together with current approval of Myfembree in its 2nd ladies’s well being indication of endometriosis and continued robust US launch momentum for Orgovyx in superior prostate most cancers, in line with Baird’s Ruiz.

Baird additionally sees a possible elevated bid at an acquisition value within the excessive $20s, analyst Brian Skorney wrote in a word on Monday. Baird has an outperform score and $20 value goal for Myovant (MYOV).

“That is balanced by the acknowledgment that, as the bulk shareholder, Sumitomo can also be in a robust bargaining place, though Pfizer is also a doubtlessly get together, given the collaboration on Orgovyx,” Skorney wrote.

Sumitovant mentioned in a press release Sunday that it has no real interest in promoting any of the Myovant shares it owns, nor would Sumitovant assist any various sale, merger, or related transaction involving Myovant (MYOV).