MYOV Peninsula drug company Myovant to go private in $1.7B

Maybe a slight overreaction, since we don't have anybody who owns 52% of OPK who could exercise the control that Sumitomo had over MYOV.

Sumitomo clinches Myovant buyout after upping offer to $2.9B
Max Gelman
Senior Editor
A few weeks after balking at a buyout offer, Myovant Sciences appears to have successfully negotiated upward.

The former Vivek Ramaswamy company accepted a deal from its majority owner Sumitomo Pharma to buy out the rest of its shares, Myovant announced Sunday night. Already owning a 52% stake, Sumitomo bought out the remaining shareholders for $1.7 billion, a deal that valued Myovant at $2.9 billion.

Sumitomo paid $27 per share in the deal, a 10% premium on Friday’s closing price — and a 50% premium on the closing price before the company’s first buyout offer earlier this month.

Sunday’s deal had been in the works for a few weeks, as Myovant had announced on Oct. 2 that it rejected a lower offer from Sumitomo and its Myovant-owning subsidiary, Sumitovant. That offer hinged on a $22.75 per share price, valuing the company slightly less than the final deal, at $2.5 billion.

But Sumitomo appeared undeterred, and given its controlling stake, it was able to block Myovant from selling the rest of its shares to any other firm. The lack of competition didn’t end up mattering much, however, as Sumitomo still came away with the remaining Myovant stake.

The deal centered around Myovant’s two approved products, Orgovyx and Myfembree. The former is approved to treat advanced prostate cancer, first getting its nod in December 2020, while the latter is OK’ed for heavy menstrual bleeding associated with uterine fibroids and endometriosis. Myfembree got its approvals in May 2021 and this past August.

Pfizer and Myovant’s endometriosis pain drug Myfembree gets another FDA nod
Myovant’s relatively recent approvals have resulted in little revenue so far, with the most recent three-month quarter — from April to June, representing Myovant’s fiscal first quarter — bringing in about $40 million combined. But Sumitomo execs are evidently convinced of the potential.

“By making Myovant a wholly owned subsidiary of Sumitovant, we believe that we will be able to accelerate implementation of management strategies that make full use of cash flow generated by Orgovyx and Myfembree for sustained growth of the Sumitomo Pharma Group,” Sumitomo CEO Hiroshi Nomura said in a prepared statement.

Myfembree is a Pfizer-partnered drug and is competing with AbbVie’s Orilissa, approved for women with moderate to severe endometriosis pain. Pfizer paid Myovant a $100 million milestone following the drug’s August approval.