Sumitovant and Sumitomo submitted a non-binding proposal to the audit committee of the board of directors of Myovant for the acquisition of all outstanding shares of the company that are not currently held by Sumitovant for $22.75 for each share in cash.
At present, Sumitovant owns nearly 52% of Myovant’s outstanding shares.
The board of directors of Myovant constituted a special committee of independent directors including its audit committee members to assess the proposal.
The special committee decided that the deal substantially undervalues Myovant and is not in the firm’s or its minority shareholders’ best interests.
Additionally, the committee is open to considering any better proposal that shows Myovant’s complete and fair price as well as in the company and its shareholders’ best interests.
The proposed acquisition had valued Myovant at an equity price of $2.4bn and a $2.5bn enterprise price.
The deal also offered an opportunity to merge capabilities expertise, platforms and resources to offer innovative treatment for unmet needs in women’s health and prostate cancer.
Since investing in Myovant in December 2019, Sumitovant and Sumitomo had a collaborative and successful partnership.
This aided in the continued development and marketing of Orgovyx and Myfembree in prostate cancer and women’s health in the US and abroad.
Established in 2016, Myovant conducted five successful Phase III clinical trials in oncology and women’s health.
It has also obtained three regulatory approvals from the US Food and Drug Administration (FDA) for advanced prostate cancer in men, uterine fibroid-linked heavy menstrual bleeding in women and premenopausal women with endometriosis-associated moderate to severe pain.