Myovant finally agrees to full buyout by Sumitomo

Following its previous rejection of Sumitomo Pharma’s (TYO: 4506) full acquisition proposal, endocrinology specialist Myovant Sciences (NYSE: MYOV) has now accepted an increased offer from the Japanese major, with the news pushing its shares up 9% to $26.72 this morning.

Via its wholly-owned subsidiary Sumitovant Biopharma, Sumitomo will acquire all outstanding 48% of shares in Myovant not already owned by Sumitovant for $27.00 per share in cash. This compares with its original offer price of $22.75 announced on October 2. It corresponds to a total transaction value of $1.7 billion on a fully diluted basis, and a total company value of $2.9 billion on a fully diluted basis. The transaction is anticipated to close in the first quarter of 2023

The purchase price represents a premium of approximately 50% to Myovant’s closing share price on September 30, 2022, the last day of trading prior to Sumitovant’s initial non-binding proposal, and a premium of approximately 55% to the 60-day volume weighted average price of Myovant’s shares through September 30, 2022. The agreement has been approved by the boards of Sumitovant and Sumitomo Pharma and unanimously recommended by a Special Committee of the independent directors of Myovant and, acting upon such recommendation, approved by its full board of directors with the Sumitovant designated directors recusing themselves and abstaining from the deliberations and vote.