Why Myovant Sciences Stock Is Skyrocketing Today

Shares of Myovant Sciences (NYSE: MYOV) were skyrocketing 37.9% as of 11:32 a.m. ET on Monday. The huge gain came after the company announced that its board of directors' special committee rejected a proposal from Japanese drugmaker Sumitomo Pharma and its wholly owned subsidiary Sumotivant Biopharma to fully acquire Myovant.

Sumitovant already owns roughly 52% of Myovant's outstanding shares. The proposal put forward by Sumitomo was to buy the rest of the company for $22.75 per share in cash. However, Myovant's board determined that the offer "significantly undervalues" the company.

Investors cheered today's news for one overriding reason: They suspect that Myovant can fetch an even higher price. Myovant hinted at this possibility in the press release announcing the offer, stating that the special committee "remains open to considering any improved proposal that reflects the full and fair value of the company."

Source Fool.com