The SPAC story departs from the script

Immunovant has often been cited as the reason a biotech should consider going public via a special-purpose acquisition company, or “Spac”, until recently standing as a shining example of just what a successful exponent of this financing strategy could achieve.

However, with Immunovant’s majority holder, Roivant, yesterday suggesting that it might take the company private, investment bankers proposing Spac deals will hastily be redrafting pitch documents. If the deal happens Immunovant will have achieved nothing beyond a valuation surge and collapse, tapping new investors for over half a billion dollars in the process.