Sumitomo Dainippon and Roivant confirm strategic alliance

Japanese drug major Sumitomo Dainippon Pharma (TYO: 4506) and Roivant Sciences, a technology-enabled healthcare company, today announced that they have signed a definitive agreement for the creation of a novel and broad Strategic Alliance and to form a new company (the “New Company”) owned and supported by Sumitomo Dainippon.

As previously announced, this will include the transfer to Sumitomo Dainippon of Roivant’s ownership interests in five of its biopharmaceutical companies (Vants) and access to Roivant’s proprietary technology platforms, DrugOme and Digital Innovation. In addition, Sumitomo Dainippon Pharma will take an equity stake of over 10% of shares outstanding in Roivant and will have options to acquire Roivant’s ownership interests in up to six additional Vants by 2024. These 11 Vants collectively have more than 25 innovative clinical programs, with multiple potential product launches expected from 2020 to 2022.

The transaction will be subject to customary closing conditions and any required governmental approvals. Roivant will receive $3 billion from Sumitomo Dainippon as a payment to enter the Alliance. Exercise of the options by Sumitomo Dainippon will trigger additional payments to Roivant. In addition, Sumitomo Dainippon Pharma will enter separate strategic client relationships with  Datavant and  Alyvant to augment development and commercialization activities.

In addition to  Myovant Sciences,  Urovant Sciences,  Enzyvant Therapeutics, and  Altavant Sciences, the fifth Vant in the Alliance will be  Spirovant Sciences, a newly unveiled Vant focused on developing innovative gene therapies for cystic fibrosis.

Sumitomo Dainippon Pharma plans to provide financial support to the five Vants in the New Company and intends to leverage potential benefits associated with Sumitomo Dainippon’s global commercial infrastructure.