UROV Stock: 9 Things to Know About the Urovant Sciences-Sumitovant Deal

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Urovant Sciences (NASDAQ:UROV) has entered into an agreement with Sumitovant Biopharma that has UROV stock soaring on Friday.

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Here’s what investors in UROV stock need to know about the Urovant Sciences-Sumitovant Biopharma deal.

  • Sumitovant Biopharma will be acquiring Urovant Sciences for $584 million.
  • The company plans to use cash to acquire all outstanding shares of UROV stock.
  • This will have it paying investors $16.25 for each share of the stock that they own.
  • That’s a 96% premium over the stock’s closing price of $8.28 on Thursday.
  • It’s also a 92% premium over UROV stock’s 30-day volume-weighted average share price on Thursday.
  • Investors should note that Sumitovant Biopharma is the largest shareholder in Urovant Sciences with a 72% stake.
  • Even so, it will need approval from a majority of minority shareholders to move forward with the deal.
  • The deal already has unanimous support from both companies’ Boards of Directors.
  • So long as everything goes smoothly, the two companies expect the deal to close in the first quarter of 2021.

James Robinson, president and CEO of Urovant Sciences, said this about the news.

“Sumitovant is our largest investor, and we have been partnering closely with them on plans to efficiently launch vibegron and achieve scale as quickly as possible. We believe that this investment represents a vote of confidence in Urovant’s future success and will put us in an even stronger position to bring vibegron to market as a new treatment option for patients with overactive bladder and to continue advancing our promising development pipeline.”

UROV stock was up 98.2% as of Friday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


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