Roivant Sciences (ROIV) -) shares surged higher in pre-market trading after the Basel, Switzerland based drugmaker founded by Republican presidential candidate Vivek Ramaswamy agreed to sell the rights to a developing bowel disease drug it owns through a joint venture with Pfizer (PFE) -).
Switzerland-based Roche said it will pay an initial $7.1 billion for Telavant Holdings, a group in which both Roivant and Pfizer placed the rights to RVT-3101, a drug that targets inflammatory bowel diseases such as ulcerative colitis and Crohn's disease, in the United States and Japan.
Roivant holds around 75% of the joint-venture, with Pfizer owning the remaining 25% through a deal reached in 2022.
Ramaswamy, who stepped down from his role as Roivant chairman in February of this year to focus on his effort to win the Republican party nomination for President, holds a 7.17% stake in the group.
“It has been a great privilege to work on and meaningfully progress RVT-3101, and we are convinced that Roche will be able to build on these efforts and maximize patient impact with this important program going forward," said Roivant CEO Matt Gline.
"We would like to thank Pfizer for their partnership in enabling creative collaborations for the benefit of patients, and for their ongoing support," he added. "This is one of many examples of Roivant furthering its mission to accelerate the development and commercialization of medicines that matter while delivering value to patients and shareholders alike".
Roivant Sciences shares were marked 2.2% higher in early Monday trading on the Nasdaq following news of the deal and changing hands at $9.85 each
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