Roivant Sciences, the US-based biopharmaceutical company backed by telecommunications and internet group SoftBank and pharmaceutical firms Sumitomo Dainippon Pharma and Dexxon, agreed a reverse merger yesterday at a combined $7.3bn valuation.
The deal will take place with Montes Archimedes Acquisition Corp, a special purpose acquisition company sponsored by healthcare investment firm Patient Square Capital, which floated on the Nasdaq Capital Market in a $400m initial public offering in October 2020.
Sumitomo Dainippon, SoftBank subsidiary SB Management and data analytics service provider Palantir Technologies all contributed to a $200m private investment in public equity (PIPE) financing supporting the transaction.
The PIPE also featured investment and financial services group Fidelity Management & Research, Eventide Asset Management, Suvretta Capital, RTW Investments and Viking Global Investors.
Founded in 2014, Roivant has built a technology platform it uses to launch companies it refers to as ‘vants’ across a range of medical and healthcare areas. The proceeds from the deal are expected to fund its activities through 2024.
Sumitomo Dainippon Pharma took an 11% stake in the company as part of a late 2019 deal that involved it paying $3bn and also acquiring its stakes in spinoffs Myovant, Urovant, Enzyvant, Altavant and Spirovant.
SoftBank, Dexxon, QVT, Viking Global, NovaQuest Capital Management and RTW Investments had provided $200m in funding for Roivant through a 2018 round valuing it at $7bn.
The company had previously received $1.1bn in a 2017 round led by SoftBank’s Vision Fund and backed by existing investors including Dexxon. Viking Global had invested an undisclosed amount in 2015, the year after Roivant launched with $100m from Dexxon and QVT.
