Myovant Sciences (NYSE:MYOV) jumped 32% and traded above Sumitovant Biopharma’s $22.75/share offer as analysts see the potential for an increased bid and possible interest from partner Pfizer (PFE).
“In our view, we think Sumitovant’s offer appears somewhat opportunistic, and bullish investors may be able to argue that Myovant could sell for a premium to the initial $22.75/share offer,” SVB Leerink analyst Roanna Ruiz, who has an outperform rating and $23 price target on MYOV wrote in a note on Monday.
Myovant (MYOV) disclosed Sunday that 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.
Myovant (MYOV) may be in a good position to negotiate a better deal due to multiple potential “value drivers” over the next year including recent approval of Myfembree in its 2nd women’s health indication of endometriosis and continued strong US launch momentum for Orgovyx in advanced prostate cancer, according to Baird’s Ruiz.
Baird also sees a potential increased bid at an acquisition price in the high $20s, analyst Brian Skorney wrote in a note on Monday. Baird has an outperform rating and $20 price target for Myovant (MYOV).
“This is balanced by the acknowledgment that, as the majority shareholder, Sumitomo is also in a strong bargaining position, although Pfizer could also be a potentially interested party, given the collaboration on Orgovyx,” Skorney wrote.
Sumitovant said in a statement Sunday 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).
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