Comprehensive M&A data with integrated detailed company information

Sumitomo Dainippon in USD 3bn strategic alliance with Roivant
Posted on Monday, 09 September 2019 05:58
Sumitomo Dainippon Pharma has entered into a strategic alliance that includes acquiring over 10.0 per cent of Roivant Sciences and equity interest in five of its biopharmaceutical businesses (vants) for a total USD 3.00 billion. In the first instance, the Japanese pharmaceutical company will buy ownership stakes in Myovant Sciences, Enzyvant Therapeutics, Altavant Sciences, Urovant Sciences and one additional asset to be specified before the execution of the definitive agreement. The London and Basel-headquartered partner owns 46.0 per cent of New York Stock Exchange-listed Myovant and 75.0 per cent of Urovant, which is trading on Nasdaq, while Altavant and Enzyvant are each privately-held. Sumitomo Dainippon will also have options to acquire Roivant’s equity interests in up to six additional vants and can exercise its rights for each company by the second half of fiscal 2024. The total 11 biopharmaceutical businesses involved in the strategic alliance collectively have over 25 clinical programmes. Sumitomo Dainippon will also acquire Roivant’s DrugOme and Digital Innovation, which are expected improve the efficiency of the group’s own drug development, as well as its digital transformation. Finally, the Osaka-headquartered company intends to acquire over 10.0 per cent of the European partner’s shares. In all, including the stock acquisitions and the transfer of pharmaceutical-related technology platforms, Roivant expects to receive a total USD 3.00 billion, subject to a final agreement. Sumitomo Dainippon said the objective of the alliance is to rebuild its business foundation by pursuing core strategies laid out in its mid-term plan 2020. This programme consists of having a growth engine in place following the expiration of the US market exclusivity of atypical antipsychotic Latuda, which is one of its key pillars of revenue. Sumitomo Dainippon, through the alliance, will be acquiring a rich pipeline with multiple development compounds that are expected to be launched by FY 2022. This portfolio includes potential blockbusters that will boost productivity and accelerate its digital transformation. © Zephus Ltd