Roivant, the Hedge Fund Specializing in Drug Castoffs, Signs $3 Billion Deal
Japanese drugmaker Sumitomo Dainippon Pharma will buy a stake of just over 10% in Roivant Sciences
Roivant Sciences, a Swiss holding company, is the product of former hedge fund manager Vivek Ramaswamy. The firm builds “Vants” – biotech and healthcare companies that license, or own, development drugs sidelined by Big Pharma companies.
Roivant currently owns a central technology-enabled platform and 20 Vants with over 45 investigational medicines under development.
Sumitomo Dainippon Pharma will acquire Roivant’s ownership interests in five of their biopharmaceutical companies (“Vants”).
These Vants are:
- Myovant Sciences (women’s health and prostate cancer),
- Urovant Sciences (urinary diseases),
- Enzyvant Therapeutics (rare pediatric diseases),
- Altavant Sciences (rare respiratory diseases),
- One additional company to be specified
It will also get options to acquire up to 6 additional Vants and access to Roivant’s proprietary technology platforms, DrugOme, and Digital Innovation.
Under the deal, Sumitomo will pay $3 billion upfront to Roivant and takeover a stake of more than 10% of outstanding shares.
Sumitomo Dainippon Pharma is among the top-ten listed pharmaceutical companies in Japan.
Sumitomo taking a big risk?
Investors in previously listed Vants have taken massive haircuts on their market capitalizations after the companies went public:
- Urovant Sciences – 25%
- Myovant Sciences – 50%
- Axovant Gene Therapies – over 90%
The market has punished the stocks for fear of clinical failures and poor realization on commercialization.
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