Sumitomo Dainippon to acquire biopharmaceutical companies from Roivant

Sumitomo Dainippon Pharma Co., Ltd. a leading Japanese pharmaceutical company, and Roivant Sciences Ltd., a technology-enabled healthcare company, announced that they have entered into the Memorandum for the creation of a novel and broad Alliance to include the transfer to Sumitomo Dainippon Pharma of Roivant�s ownership interests in 5 of their biopharmaceutical companies (�Vants�), with options to acquire up to 6 additional Vants, and access to Roivant�s proprietary technology platforms, DrugOme and Digital Innovation. Roivant will collaborate with Sumitomo Dainippon Pharma with the continued involvement of Roivant�s senior leaders to ensure the success of the Alliance. In addition, Sumitomo Dainippon Pharma will take an equity stake of over 10% of shares outstanding in Roivant. Pursuant to the Memorandum, the Sumitomo Dainippon-Roivant Alliance, a new entity to be wholly owned by Sumitomo Dainippon Pharma, is expected to assume Roivant�s ownership interests in Myovant Sciences (women�s health and prostate cancer), Urovant Sciences (urinary diseases), Enzyvant Therapeutics (pediatric rare diseases), Altavant Sciences (respiratory rare diseases), and one additional company to be specified before the execution of the definitive agreement. Sumitomo Dainippon Pharma will also gain options to acquire Roivant�s ownership interests inup to 6 additional biopharmaceutical Vants. These 11 Vants collectively have more than 25 innovative clinical programs, with multiple potential product launches expected from 2020 to 2022.Roivant and Sumitomo Dainippon Pharma expect to sign the definitive agreement by the end of October 2019. The transaction will be subject to customary closing conditions and any required governmental approvals. Roivant is expected to receive USD $3 billion from Sumitomo Dainippon Pharma as an upfront payment to enter the Alliance, which includes taking a substantial equity ownership interest in Roivant (over 10% of shares outstanding).