Sumitomo Pharma's US unit Sumitovant agreed to buy the roughly 48% of Myovant Sciences it did not already own for $27.00 a share in cash, about $1.7 billion. The price valued the whole company at about $2.9 billion and was about 50% above Myovant's share price before Sumitovant's first offer. Myovant's independent directors had turned down a lower $22.75 offer three weeks earlier. Myovant sells two drugs based on relugolix: Orgovyx for advanced prostate cancer and Myfembree for uterine fibroids and endometriosis pain. The deal On October 23, 2022, Sumitovant Biopharma and its parent Sumitomo Pharma agreed to buy all Myovant shares they did not already own for $27.00 each in cash. Sumitovant already held about 52%. The deal was worth about $1.7 billion for the remaining shares and valued Myovant at about $2.9 billion. It was paid for with cash on hand and new borrowing. The price was about 50% above Myovant's closing price on September 30, 2022, the last trading day before Sumitovant's first proposal. A rejected first offer Sumitovant first offered $22.75 a share on October 1, 2022. A special committee of Myovant's independent directors said that price significantly undervalued the company and turned it down. Three weeks later the two sides agreed on $27.00, which Sumitovant called its best and final offer. The deal also needed approval from a majority of the shares not owned by Sumitovant, a common protection for minority shareholders when a controlling owner buys them out. About Myovant Myovant was listed on the New York Stock Exchange, with its legal home in Basel, Switzerland and its US operations in Brisbane, California. Both of its approved drugs use relugolix, a pill that lowers hormone levels. Orgovyx was approved in the US in 2020 for advanced prostate cancer. Myfembree was approved in 2021 for heavy menstrual bleeding from uterine fibroids, and in 2022 for endometriosis pain; Myovant sold it together with Pfizer. Sumitomo Pharma got its stake in 2019, when it paid about $3 billion for stakes in several Roivant Sciences companies and formed Sumitovant. It had put about $600 million into Myovant since then. Why Sumitomo Pharma did it Latuda, a schizophrenia drug sold by Sumitomo's US unit Sunovion, made up a large share of the group's profit and was losing US patent protection in February 2023. Sumitomo Pharma said owning all of Myovant would let it use all the cash from Orgovyx and Myfembree to support the group's growth. It also simplified a structure in which several US companies had outside shareholders. What happened next The deal closed on March 10, 2023, and Myovant left the stock market. In July 2023 Sumitomo Pharma combined Myovant, Urovant, Sunovion, Sumitovant and other US units into one company, Sumitomo Pharma America. Sumitomo Pharma then reported large losses as Latuda sales fell, which made the growth of Orgovyx and Myfembree central to its recovery plan.
