Biotech Stocks Drop But Roivant Lands $7B Roche Buyout Despite Questionable Sell-Off

Biotech stocks are down over 60% from recent highs due to rising interest rates and overvaluation of pipeline assets.

Roivant Sciences landed a $7.25B buyout deal from Roche for its Pfizer-owned subsidiary Telavant.

The deal centers on mid-stage IBD drug RVT-3101. Roivant expects $5.2B upfront and more later.

Despite the windfall, Roivant stock dropped 5% as biotech peers also fell. The sell-off seems questionable.

Roivant has funded 7 late-stage trials and generated 11,700% return on RVT-3101 investment. The stock drop represents a buying opportunity.