Why Did Myovant Sciences Shares Fall Despite Q2 Earnings Beat?

Tucked in its Q2 earnings release, Myovant Sciences Ltd MYOV said that Pfizer Inc PFE has notified its option decision for international rights to relugolix in oncology.
Pfizer declined its option based on its assessment of its current strategic investment priorities in international markets.
The decision has no impact on the collaboration in the U.S. and Canada for Orgovyx and Myfembree.
Myovant is currently assessing partnership opportunities with multiple interested parties, focusing on potential partners with a European commercial presence in urology or oncology.
The company reported Q2 sales of $77.9 million, better than the Wall Street estimate of $71.40 million.
It posted a narrower than expected net loss of $(0.23) compared to the consensus of $(0.38), down from $(0.75) a year ago.
Myovant held $616.0 million of cash and equivalents and $41.3 million of available borrowing capacity.
Price Action: MYOV shares closed lower by 7.19% at $19.89 on Tuesday.