Myovant Sciences (NYSE:MYOV) said a special committee of its board rejected a $2.4 billion, or $22.75/share, offer from Sumitovant Biopharma to buy the remaining shares of the biopharma company it doesn't already own.
Sumitovant currently holds approximately 52% of the outstanding shares of Myovant (MYOV). The offer represents a 27% premium to MYOV's closing price on Friday. The proposed acquisition consideration represents an equity value for Myovant of $2.4 billion and an enterprise value of $2.5 billion, Sumitovant said in a statement.
Myovant (MYOV) board's special committee determined that the offer "significantly undervalues" the company and is not in the best interest of the company or its minority shareholders, according to a statement. The special committee remains open to considering any improved proposal that reflects the full and fair value of the company.
Sumitovant said in its statement that it has no interest in selling any of the Myovant shares it owns, nor would Sumitovant support any alternative sale, merger, or similar transaction involving Myovant (MYOV).
The Myovant (MYOV) special committee retained Goldman Sachs as its financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisor to assist with its review of the proposal. J.P. Morgan Securitiesis serving as financial advisor and Sullivan & Cromwell LLP is serving as legal counsel to Sumitovant and Sumitomo Pharma.
Last month Myovant Science s (MYOV) was upgraded to outperform at SVB following additional Myfembree indication. Myovant (MYOV) partners with drug giant Pfizer (PFE) on uterine fibroids therapy Myfembree and other drugs.
Recall on Dec. 28, 2020 Myovant (MYOV) shares soared 21% after a collaboration agreement with Pfizer (PFE) aimed at jointly developing and commercializing Orgovyx (relugolix) in advanced prostate cancer. Under the terms of the deal, Myovant was expected to receive up to $4.2B in payments. Myovant (MYOV) disclosed in late October of last year that Pfizer declined to exercise an option in their partnership for oral GnRH receptor antagonist, relugolix.