Sumitomo Dainippon Pharma Co., Ltd. (Head Office: Osaka, Japan; Representative Director, President and CEO: Hiroshi Nomura) announced today that it has completed the procedure related to stock transfers, etc. and for the formation of a Strategic Alliance with Roivant Sciences (Head Offices: London and Basel; Founder & CEO: Vivek Ramaswamy) as of December 27, 2019.
As consideration for the Strategic Alliance, Sumitomo Dainippon Pharma has paid total of approximately US$3 billion (approximately ¥330 billion) to Roivant, which includes US$2.0 billion (approximately ¥220 billion) for the acquisition of all the stock of Roivant's 100%-owned new company, "Sumitovant Biopharma", etc. and US$1.0 billion (approximately ¥110 billion) for the acquisition of 11% of Roivant's shares. Financing was secured with the resources of Sumitomo Dainippon Pharma and bridge loans.
Roivant has transferred its ownership interests in five of its subsidiaries (Myovant Sciences Ltd., Urovant Sciences Ltd., Enzyvant Therapeutics Ltd., Altavant Sciences Ltd., and Spirovant Sciences Ltd.) and certain of its employees involved in certain of Roivant's healthcare technology platforms to the newly established company. Through the Strategic Alliance, Sumitomo Dainippon Pharma has also acquired all shares of the new company as well as certain of Roivant's healthcare technology platforms and 11% of Roivant's shares. Prior to the stock transfer execution in the Strategic Alliance, Roivant has acquired greater than 50% of the voting rights of Myovant Sciences Ltd. and transferred it to the new company. Sumitomo Dainippon Pharma's 11% interest in Roivant is represented by newly issued shares.
As a result of the acquisition of shares in the new company by Sumitomo Dainippon Pharma, a total of 33 companies will become consolidated subsidiaries of Sumitomo Dainippon Pharma, including the subsidiaries of the new company and the five subsidiaries respectively.
The financial impact of the Strategic Alliance on business performance of Sumitomo Dainippon Pharma had previously been factored into its forecasts for consolidated earnings results for the fiscal year ending March 2020 under certain assumptions that the procedure for the transfer of shares, etc. would be completed at the end of March 31, 2020. Financial impact of the early completion of the procedure on the consolidated financial results for the year ending March 2020 is currently under review, and Sumitomo Dainippon Pharma will announce as soon as it becomes clear.
Please note that an overview of the Strategic Alliance was disclosed on October 31, 2019, "Sumitomo Dainippon Pharma and Roivant Sciences Sign a Definitive Agreement for a Strategic Alliance".
