Sumitovant buys full ownership of Urovant

Sumitovant Biopharma and Urovant Sciences (Nasdaq: UROV) have entered into a definitive merger agreement for Sumitovant to acquire the outstanding shares of Urovant common stock not already owned by Sumitovant at a price of $16.25 per share in cash.

Sumitovant, which currently owns 72% of the outstanding shares of Urovant common stock, is a wholly owned subsidiary of Japan’s Sumitomo Dainippon Pharma (TYO: 4506). Sumitovant is also the majority shareholder of Myovant Sciences, and wholly owns Enzyvant Therapeutics, Spirovant Sciences, and Altavant Sciences.

The acquisition consideration represents an equity value for Urovant of $584 million and an enterprise value of $681 million. The per share consideration represents a premium of 96% to Urovant's closing price on November 12, 2020, and a premium of 92% to Urovant's 30-day volume weighted average share price on November 12, 2020. The merger agreement has been unanimously approved by a special committee of Urovant's board of directors. The special committee of Urovant's board has recommended that Urovant's shareholders vote in favor of the transaction.