Roivant Sciences Gets SPAC Deal: What To Expect From This BioPharma, Health Technology Company

A drug discovery company with ownership stakes in several public and private biopharmaceutical companies is going public with a SPAC deal announced Monday morning.

The SPAC Deal: Roviant Sciences announced a SPAC deal with Montes Archimedes Acquisition Corp MAAC. The deal values the company at an enterprise value of $5 billion.

A $200 million PIPE is backed by companies including Softbank Group Corp., Fidelity Management & Research Co., Sumitomo Dainippon Pharma and Palantir Technologies Inc PLTR.

Shares of the new company will trade as ROIV on the Nasdaq with an anticipated closing date in the third quarter.

A percentage of current ownership shares will have a three-year lock-up and earn-outs based on $15 and $20 price points. Current Montes Archimedes acquisition shareholders will own 5.6% of the company after the merger.

The deal will give Roivant gross proceeds of $611 million that will help the company's operational runway through 2024. 

Related Link: 5 Long Term SPACs For Investors To Consider

About Roivant: Roivant develops transformative medicines for itself and other companies. The company is a leader in drug discovery using a combination of physics and machine learning.

The company launched Vants, which are focused biopharmaceutical and health technology companies:  Alyvant, Aruvant, Cytovant, Dermavant, Datavant, Genevant, Immunovant Inc IMVT, Lokavant, Silicon Therapeutics, Sinovant and Vantai.

Roivant has more than 40 drugs in development including eight that have had positive Phase 3 studies. Current target areas include psoriasis, endometriosis, prostate cancer, uterine fibroids and overactive bladder.

Roivant's ownership stakes in public companies include 54% of Immunovant Inc, 32% of Arbutus Biopharma Corp ABUS and 29% of Sio Gene Therapies Inc SIOX. Roivant also owns stakes in many privately-held biopharmaceutical companies.

Growth Ahead: Roivant has a $3 billion upfront deal with Sumitomo Dainippon. The deal included selling off five Vants to Sumitomo and selling a 10% stake in Roivant. Sumitomo has the chance to buy six more Vants through 2024.

The company has several 2021 events coming from partnered drugs that could lead to approvals with the FDA.

One of the highlighted treatments in the presentation was Tapinarof from Dermavant. Tapinarof is a novel daily topical cream that could be the first treatment of its type for psoriasis in 20 years.

MAAC Price Action: Shares are up 1.37% to $9.99 on Monday morning.

(Photo: This Is Engineering via Unsplash)