BASEL, Switzerland - Roivant Sciences Ltd. (NASDAQ:ROIV), a biopharmaceutical company, has announced the authorization of a share repurchase program of up to $1.5 billion. This includes the acquisition of all shares held by Sumitomo Pharma, totaling $648 million, which is expected to reduce the company's shares outstanding by approximately 9% as of February 9, 2024.
The repurchase agreement with Sumitomo Pharma involves 71.3 million shares at $9.10 per share, with a total value of roughly $648.4 million. The transaction is scheduled to close around April 4, 2024. The broader repurchase program is to be funded from Roivant's available cash and does not have a set expiration date. The company's board has discretion over the timing and volume of repurchases, which may be affected by market conditions and other factors.
In conjunction with the share repurchase news, Roivant also reported positive outcomes from its Phase 2 NEPTUNE study of brepocitinib in non-infectious uveitis (NIU).
The study showed that 29% of subjects receiving brepocitinib 45 mg and 44% of subjects on the 15 mg dose met the primary efficacy endpoint of Treatment Failure at week 24. The Treatment Failure rate from disease activity was 18% for the 45 mg arm, marking a significant finding in the treatment of NIU. All secondary efficacy endpoints in the study were positive and dose-responsive.
Roivant's CEO, Matt Gline, expressed satisfaction with the study results, highlighting the potential of brepocitinib as a once-daily oral therapy for NIU, a condition that can lead to blindness. The company plans to initiate a Phase 3 program for NIU in the second half of 2024 and is also conducting a Phase 3 study for brepocitinib in dermatomyositis, with results expected in 2025.
The information in this article is based on a press release statement from Roivant Sciences Ltd.
InvestingPro Insights
In light of Roivant Sciences Ltd.'s recent share repurchase announcement and its positive Phase 2 NEPTUNE study outcomes, investors may find the following real-time data and InvestingPro Tips particularly insightful:
InvestingPro Data shows Roivant Sciences with a market capitalization of $8.4 billion USD and an attractive price-to-earnings (P/E) ratio of 1.79. Notably, the adjusted P/E ratio for the last twelve months as of Q3 2024 stands at 7.92, reflecting market sentiment and potential growth expectations. Despite significant revenue growth of 185.76% in the same period, the company's gross profit margins are in the negative, at -336.78%, indicating challenges in cost management and profitability.
Two key InvestingPro Tips for Roivant Sciences include:
- The company holds more cash than debt on its balance sheet, which is a positive indicator of financial stability and may provide flexibility for future investments or to weather economic downturns.
- Analysts do not anticipate the company will be profitable this year, which is an important consideration for investors focused on bottom-line growth.
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