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SPAC-on-SPAC Deal Falls Apart, and So Does Immunovant’s Stock

  • Roivant backs away from full buyback of its drug developer
  • Instead, Roivant plows in $200 million to support more testing
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A private drugmaker aborted plans to buy back its own SPAC at a hefty premium, sending shares of Immunovant Inc. plunging to an all-time low.

The withdrawal by Roivant Sciences Ltd. unwinds part of its plan to go public by selling itself to a special-purpose acquisition company, and then using the proceeds to reacquire full ownership of Immunovant, which it merged into another SPAC in 2019. Immunovant’s stock, which topped $53 last year, closed 26% lower.