May 20, 2021 - Economy

Drug developer Roivant to reacquire former subsidiary Immunovant

Illustration of hands in a suit chiseling a dollar sign into a pill

Illustration: Sarah Grillo/Axios

Roivant Sciences, a New York-based drug development firm that recently agreed to go public via SPAC, will offer to buy Immunovant, a former Roivant subsidiary that was sold to a SPAC in 2019.

Why it matters: This appears to be the first-ever transaction of its kind, which means we get to name it. My suggestion is deSPAC/reSPAC, but you're encouraged to propose snappier ones.

Details: Roivant's SPAC deal is with Archimedes Acquisition Corp. at an implied $7.3 billion valuation.

  • Immunovant went public via a SPAC called Health Sciences Acquisitions. Assuming Roivant's deal goes through, it would then use a mix of cash and stock to buy the 42.5% stake it doesn't already hold in Immunovant.

Bottom line: "Roivant already said in a March filing it wants to re-acquire Immunovant, which is testing a treatment for autoimmune diseases. There's a whiff of hidden value, because Roivant specifically said it's willing to pay more than the current price, a premium that Robert W. Baird & Co. estimates could amount to $1.1 billion. Immunovant now trades around $15 a share with a market value of about $1.5 billion." — Crystal Kim & Tom Contiliano, Bloomberg

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