Following the news that Myovant Sciences has rejected a takeover bid from its majority shareholder, Sumitomo Pharma;

Amy Murray, Healthcare Analyst at GlobalData, a leading data and analytics company, offers her view:

“Sumitomo’s offer to buy Myovant Sciences came just weeks after Myovant and its partner Pfizer won a Food and Drug Administration (FDA) expanded approval of Myfembree for the management of moderate-to-severe pain associated with endometriosis. This approval supports Myfembree’s potential to fulfill significant unmet needs in the endometriosis space, so it is likely that Myovant now considers itself to be of higher value.

“The majority of current medical therapies treat endometriosis by targeting the estrogen production pathways or by modulating the menstrual cycle. The key issue with these approaches is that women only experience relief while using the therapies, but recurrence is common when the treatment is ended. Additionally, the efficacy of these drugs often diminishes over time, and many experience side effects including menopausal-like symptoms and decreases in bone mineral density. As a result, compliance is affected and invasive surgical intervention is made, often repeatedly throughout the reproductive years.

“The approval of Myfembree marks a critical step forward in the endometriosis space. Firstly, Myfembree offers the convenience of an oral once-daily treatment option for the management of moderate-to-severe pain. Secondly, being a gonadotropin-releasing hormone receptor (GnRH) antagonist, Myfembree promises higher efficacy rates and less bone mineral density loss than the commonly used GnRH agonists. Thirdly, Myfembree can be used for up to 24 months, providing patients with a longer-term and safer treatment option.

“With Myovant stating that it is open to a higher bid, it remains to be seen whether Sumitomo will increase its offer price to reflect the anticipated success of Myfembree in the endometriosis space, or whether a bidding war will break out.”