Sumitomo Dainippon Pharma Co. Ltd. will pay about $3 billion to acquire a 10% equity stake in Roivant Sciences GmbH and ownership interests in five of its biopharmaceutical companies.
The companies entered into a memorandum of understanding in which Sumitomo Dainippon-Roivant Alliance is expected to assume Roivant's ownership interests in Myovant Sciences Ltd., Urovant Sciences Ltd., Enzyvant Sciences GmbH, Altavant Sciences and one additional company to be specified prior to reaching a definitive agreement, expected by the end of October. These companies are developing a range of treatments including therapies for women's health conditions and pediatric rare diseases.
Sumitomo will have options to acquire up to an additional six companies and have access to Roivant's proprietary technology platforms: DrugOme, for speeding up pipeline acquisition and clinical development, and Digital Innovation, for improving business processes.
The 11 biopharmaceutical companies under Roivant have more than 25 clinical research programs, with products expected to reach the market from 2020 to 2022.
Osaka, Japan-based Sumitomo also expects to enter contract agreements with Roivant subsidiaries Datavant Inc. and Alyvant to boost its existing and future research and commercialization activities and advance its product portfolio.
Sumitomo's investment in the Swiss biotechnology company comes ahead of the expiry of the U.S. market exclusivity of schizophrenia medicine Latuda in 2023. Latuda is marketed in the U.S. by Sunovion Pharmaceuticals Inc., an indirect subsidiary of Sumitomo.
Hiroshi Nomura, the representative director, president and CEO of Sumitomo, said he hopes the alliance will bring the Japanese company growth drivers not only to soften the loss of Latuda's patent protection but also establish the company as a global player in the industry by 2033.
The deal is subject to closing conditions and governmental approvals.
