Sweden’s Sobi Agrees Merger with CTI BioPharma
Swedish Orphan Biovitrum (Sobi) has agreed a merger with CTI BioPharma, a US biopharmaceutical company focused on blood-related cancers and rare diseases. Through a wholly owned, indirect subsidiary, Sobi plans to commence a cash tender offer that values CTI at $1.7 billion.
Sobi said the takeover accelerates its strategy to build a leading franchise in rare hematology and is highly complementary to its existing portfolio. The deal will add Doptelet that expands Sobi’s leading position in rare hematology, and Vonjo, a novel oral kinase inhibitor for treating myelofibrosis, specifically addressing patients with severe thrombocytopenia — a low blood platelet count. Myelofibrosis is a type of blood cancer that affects the bone marrow.
Vonjo obtained accelerated approval by the US Food and Drug Administration in February 2022 for treating adults with intermediate or high-risk primary or secondary myelofibrosis.
“CTI represents a perfect fit for Sobi’s hematology franchise today, adding a powerful and highly differentiated new product that will make a significant difference for patients. The acquisition of CTI is the latest in a series of transformative transactions Sobi has conducted to build its leading rare hematology franchise,” said Guido Oelkers, Sobi’s president and CEO.
Sobi’s main shareholder, Swedish investment group Investor AB, has committed to vote in favor of the transaction at an extraordinary general meeting. The transaction is expected to close in the third quarter of 2023.
“Investor was instrumental in the creation of Sobi close to 15 years ago. Sobi has during our ownership successfully built a leading hemophilia franchise, broadened its product portfolio and expanded geographically,” said Investor’s president and CEO Johan Forssell, adding that the acquisition “is in line with the company’s strategy to continue broadening its product portfolio within prioritized areas as well as strengthening its US presence.”
Headquartered in Seattle, Washington, CTI has approximately 144 employees and generated revenue of $53.9 million in 2022.
Author: Elaine Burridge, Freelance Journalist
