Investor’s Watch List: Myovant Sciences (NYSE: MYOV)

Myovant Sciences Ltd. (NYSE: MYOV) closed with decline of -0.24% to $20.99. Recent traded volume was 187 million shares versus to it an average volume of 93,655 million shares. The company holds 68.23M million shares outstanding and market cap of 1.432B billion. The stock’s day range was recorded between a low of $20.99 and a high $21.58. The one year high of the company is $25.54 and the one year low is $11.30.

After the last closing session, the bid price was seen at 20.92 x 1000. The bid price represents the higher price that a buyer or buyers are willing to pay for a security. The ask price was registered at 21.47 x 1200. The ask price indicates the lower price that a seller or sellers are willing to receive for the security.

Myovant Sciences (NYSE: MYOV) recently reported corporate updates and stated financial results for the fourth fiscal quarter and full fiscal year ended March 31, 2018.

Research and development (R&D) expenses for the quarter ended March 31, 2018, were $40.1M contrast to $19.0M for the comparable period in 2017. R&D expenses for the fiscal year ended March 31, 2018, were $116.8M, contrast to $43.5M for the previous fiscal year. The increase for both the quarter and the year primarily reflects the progress of Myovant’s ongoing five Phase 3 clinical trials of relugolix, which were initiated in 2017, and additional personnel-related expenses as a result of a raised number of R&D employees.

General and administrative (G&A) expenses for the quarter ended March 31, 2018, were $7.3M, contrast to $3.9M for the comparable period in 2017.  G&A expenses for the fiscal year ended March 31, 2018, were $24.2M, contrast to $12.4M for the previous fiscal year. The increase for both the quarter and the year primarily reflects increases in personnel-related expenses, professional service fees, and other administrative expenses to support Myovant’s headcount growth and expanding operations.

Interest expense for the quarter and year ended March 31, 2018, was $1.1M and $2.0M, respectively, while there was no interest expense in the comparable previous year periods.  Interest expense for both the quarter and the year consisted of interest expense related to financing contracts with NovaQuest Pharma Opportunities Fund IV L.P., or NovaQuest, and Hercules as well as the associated non-cash amortization of debt discount and issuance costs.

Net loss for the quarter ended March 31, 2018, was $48.3M, contrast to $21.7M for the comparable period in 2017. Net loss for the fiscal year ended March 31, 2018, was $143.3M, contrast to $83.4M for the previous fiscal year.  On a per ordinary share basis, net loss was $0.81 and $0.37 for the quarters ended March 31, 2018 and 2017, respectively, and $2.41 and $1.70 for the fiscal years ended March 31, 2018 and 2017, respectively. The increase in the net loss and net loss per ordinary share for both the quarter and the year were driven primarily by the increase in costs associated with Myovant’s ongoing Phase 3 clinical trials, which were initiated in 2017, as well as increased personnel-related expenses.  The net loss for the previous fiscal year of $83.4M included $27.5M of non-cash expense resulting from changes in the fair value of the Takeda warrant liability, which expired on April 30, 2017.

Capital resources:  Cash and committed funding totaled $200.6M at March 31, 2018, consisting of $108.6M of cash and $92.0M of remaining financing commitments accessible from NovaQuest under the NovaQuest Securities Purchase Contract and the NovaQuest Equity Purchase Contract.  In the first quarter of fiscal year 2018, Myovant further strengthened its balance sheet, raising $22.5M with the completion of the Private Placement of 1,110,015 ordinary shares to RSL and raising net proceeds of about $57.6M, after deducting commissions, from the issuance and sale of 2,767,129 ordinary shares pursuant to its ATM program. About $40.6M of capacity remains accessible under the ATM program.

In the liquidity ratio analysis; Myovant Sciences Ltd.’s (MYOV) debt to equity ratio was 0.73 while current ratio was 3.10. The company has the institutional ownership of 22.10%. The stock’s RSI amounts to 44.69.

Angela Maria

Angela writes about Dividend news of Healthcare, Services, technology, financial, energy sector companies and other global companies that traded in US market. Before pursuing a financial and journalism career, she graduated from University of Georgia with a degree in Economic and Mathematics.

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