Shares of Myovant Sciences soared 27% on Monday, after its parent company Sumitovant Biopharma and Pfizer Inc. reached an agreement to jointly develop a treatment for prostate cancer and women’s health. The transaction was worth up to $4.2 billion in advance Payments and potential milestone payments.
It will receive an upfront payment of US$650 million to develop and market the once-daily oral gonadotropin-releasing hormone (GnRH) receptor antagonist relugolix (relugolix), which received U.S. Food and Drug Administration in December Approved by the Drug Administration, it can be used to treat advanced prostate cancer.
If approved, the two companies will also develop and sell relugolix combination tablets (relugolix 40 mg, estradiol 1
see: Bayer’s prostate cancer drug approved in China
The two companies will distribute profits and certain costs equally, while Myovant will record revenue. Myovant will also be responsible for interactions with regulatory agencies and drug supply and clinical development. The company will be entitled to a potential regulatory milestone of $200 million in women’s health for the FDA-approved relugolix combination tablet, and achieve a tiered sales milestone after reaching a net sales of $2.5 billion in prostate cancer and women’s health indications.
Nick Lagunowich, global president of PFE Internal Medicine PFE, said: “Among the millions of women with common and debilitating symptoms related to uterine fibroids and endometriosis, there are still There are a lot of unmet needs,”
Evercore analyst Josh Schimmer said the deal is good for Myovant.
“After having some time to digest it, we like it,” Schimmer wrote in a note to the customer. “Although it gave up half of the economics of relugolix (we have not yet modeled it), it can be fully offset by increasing the commercial efforts of PFE and the billions of milestones that we think can be achieved.”
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He reiterated his outperform rating on the stock and a target stock price of $55, and said that the stock is one of his suspended stocks.
He said: “Investors have been worried that Sumitomo’s majority stake in MYOV may limit the development of strategic partners.” “This transaction adds another powerful company with potential value synergy.”
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Myovant is one of five companies under Sumitovant.
According to Cancer.net, apart from skin cancer, prostate cancer is one of the most talked-about comments among men. It is estimated that 191,930 men will be diagnosed with this disease this year, and about 60% of them will be over 65 years old.
Myovant’s share price has risen 84% in 2020, and SPDR S&P Biotechnology ETF XBI,
Rose 57%, while the S&P 500 SPX rose,
An increase of 16%.