Urovant Sciences (UROV) today announced that it has signed an agreement to be acquired in an all cash deal with it’s largest shareholder, Sumitovant Biopharma. The definitive agreement deal is valued at $584 million.
Shares of the Irvine, California-based Urovant Sciences soared from $8.28 up 94.01% to $16.07. Under the agreement, Sumitovant Biopharma will acquire Urovant Sciences for $16.25 a share or about $584 million in an all-cash merger.
The price is a 96% premium over Urovant’s closing share price of $8.28 on Thursday.
Sumitovant is currently Urovant’s largest shareholder, owning about 72% of the company.
All outstanding shares of Urovant stock, other than those held by Sumitovant, will be cancelled and converted into the right to receive $16.25 a share.
The transaction is expected to close in the first quarter of 2021. Urovant will become a wholly owned subsidiary of Sumitovant.
Urovant’s leading product is vibegron, an oral, once-daily treatment for overactive bladder. The company expects the Food and Drug Administration to act on its new drug application for vibegron in the U.S. by Dec. 26.