Shares of Urovant Sciences Ltd. [NASDAQ: UROV] soared 93.24% during the trading session of Friday. The company has disclosed that it has signed a merger agreement with Sumitovant Biopharma.
Sumitovant Biopharma will acquire Urovant Sciences for approximately $584 million in total equity value in an all-cash merger. The shareholders of Urovant Sciences will receive $16.25 per share in cash.
The special committee of the Urovant Board of Directors has approved the offer of Sumitovant Biopharma. The committee has observed that this offer will create exceptional value for the shareholders of Urovant Sciences.
As per the agreement, a wholly-owned subsidiary of Sumitovant will combine with and into Urovant with Urovant to continue the merger as a wholly-owned subsidiary of Sumitovant. Additionally, the deal will be executed after the approval of a majority of minority shareholders.
Urovant Sciences Ltd. [NASDAQ: UROV] shares were trading up 93.24% as it gained +16.00 at the time of writing on Friday. Urovant Sciences Ltd. [UROV] share price went from a low point around $6.55 to briefly over $15.98 in the past 52 weeks, though shares have since pulled back to $16.00. UROV market cap has remained high, hitting $269.60 million at the time of writing.
Agreement between Urovant and Sumitovant is anticipated to be completed in the 2021 quarter one. The company is also planning to introduce vibegron. It has submitted that the New Drug Application for vibegron to FDA. Furthermore, Urovant is projecting to get the approval of the FDA by December 26, 2020.