At the young age of 34, Vivek Ramaswamy, the CEO of Roivant Sciences, has a net worth of a staggering $600 million!
Graduating from Harvard with a degree in biology, followed by a J.D from Yale Law School, it’s fair to say that Vivek was bound to create ripples.
As of 2018, this definite prediction has come true. With it, however, a little bit of controversy has come.
“Return on Investment”
The ROI in Roivant Sciences are notoriously abbreviated for ‘Return on Investment,’ which is precisely how the CEO pictures the company to perform. Even though he’s made his fair share of profit from pharma drug cast-offs, other investors are still waiting for the piece of the pie.
Just recently announced, Roivant Sciences will be selling a few of their ownership stakes in a few biopharma companies. With a potential pharmaceutical buyer from Japan, Sumitomo Dainippon has taken an interest in the deal. A deal that can be worth up to $3billion, making an excellent return for the CEO of Roivant Sciences.
However, it remains a mystery if the deal will fall through. Sumitomo has taken an interest in Vivek’s drug portfolio; with this deal, Sumitomo will have access to six different Roivant spinout companies. The platforms that Roviant has to offer and an additional 10% ownership stake. The issue lay in the fact that two of the companies involved in this transaction Myovant Sciences and Urovant Sciences are publicly traded.
Will this be the way forward for Sumitomo?
At this stage, nothing much can be said with absolute certainty. However, it’s interesting to bear in mind how Sumitomo Dainippon had been spiraling in losses because of its loss of patent protection on Latuda, the bipolar depression drug.
Venturing with Roivant is speculated to get Sumitomo out of this rut and stand back on its own feet. The Japanese pharmaceutical has chosen to buy stakes in five Roivant spin-offs (Myovant, Urovant, Enzyvant, Altavant and an as yet another ‘Vant’ company).
Roivant holds a significant position in these companies. If the deal finalizes, the stakes and interests will be transferred exclusively to Sumitomo.
With one of the spins off having a late-phase drug, it has become an asset for other pharmaceuticals companies looking for acquisitions. As of yet, a few of them are still in contact with FDA regarding approvals and regulations. However, it’s projected that this process won’t take as long as anticipated and will be marketed soon.
In the long run, this deal is as beneficial for Roivant as it is for Sumitomo. A relationship that will give Sumitomo assets and investment to invest in other forms of therapy and medicinal technology.