Immunovant to Get Buyout Proposal From Majority Holder Roivant

Immunovant shares rose after its controlling holder, Roivant Sciences, said it would propose to buy the 42.5% that it doesn’t already own.
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Immunovant  (IMVT) - Get Report shares rose on Monday after the New York clinical-stage biopharma's controlling holder, Roivant Sciences, said it would propose to buy the 42.5% that it doesn’t already own.

Immunovant recently traded at $15.26, up 13%. The shares are down 67% over the past three months. 

The company develops monoclonal antibodies to treat autoimmune diseases.

It was set back last month, saying it voluntarily paused dosing in its clinical trials for an eye-disease drug, IMVT-1401, "out of an abundance of caution."

The company said it learned of a physiological signal consisting of elevated total cholesterol and low-density lipoprotein levels in thyroid-eye-disease patients treated in a Phase 2b trial of IMVT-1401.

As for Roivant, it plans to approach Immunovant to negotiate a deal, the company said in a Securities and Exchange Commission filing. 

Roivant expects any potential transaction to be at a premium to the current per-share trading levels, "consistent with similar precedent transactions in the life sciences industry involving acquisitions of minority interests by majority shareholders.”

“The mix of cash or equity consideration [would] be mutually determined by" Roivant and Immunovant, Roivant said. 

Roivant is “evaluating a potential public listing that would take effect prior to the consummation of any transaction with the issuer,” the New York drug developer said in the filing.

“As [Immunovant's] controlling shareholder, Roivant has received nonpublic information about the issuer and its lead product candidate. 

No assurances can be given that a proposal will be made to the issuer, that any transaction with the issuer will be consummated or that Roivant will complete a public listing.”