Japan’s Sumitomo Pharma to invest $3b for 10% stake in Swiss Roivant

Photo: Reuters

Japan’s Sumitomo Dainippon Pharma Co will pay $3 billion for a 10% stake in Swiss drugmaker Roivant Sciences Ltd and interests in five of its biopharmaceutical businesses, the two companies said on Friday.

The deal, which will open up new drug lines for Sumitomo Dainippon, will also give it the option to acquire interests in an additional six businesses, as well as access to Roivant’s technology platforms, they said in a statement.

It comes as Sumitomo Dainippon’s schizophrenia treatment Latuda is due to lose its U.S. market exclusivity in 2023. The Japanese company will take ownership of Roivant units that develop treatments for prostate cancer, urinary diseases, pediatric illnesses and respiratory diseases, they said.

“We look forward to deepening our relationship with Roivant, which has a rich development pipeline, technology platforms, and distinctive talents,” Sumitomo Dainippon CEO Hiroshi Nomura said in the statement.

Like its rivals, Japan’s seventh-largest pharma company by revenue, is grappling with a declining population at home and a need to go abroad to find growth.

While the bulk of Japanese drug firms have been largely cautious about overseas acquisitions, there are signs of change. Takeda Pharmaceutical (4502.T) this year completed a $59 billion purchase of Shire Plc, catapulting it into the list of the world’s top 10 drugmakers by sales – a rarity for a Japanese pharma company.

A fifth Roivant business unit will also be transferred before the deal’s conclusion, the two companies said.

The 11 businesses include more than 25 clinical programs with multiple product launches expected between 2020 and 2022, they said.

Shares of Sumitomo Dainippon finished up 1.7% at 1,800 yen on Friday.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.