RARE Daily

Sobi to Acquire CTI BioPharma for $1.7 Billion to Enhance its Position in Rare Hematology

May 10, 2023

Rare Daily Staff

Swedish Orphan Biovitrum, or Sobi, said it has entered into an agreement to acquire CTI Biopharma, a company focused on blood related cancers and rare diseases.

The acquisition complements and strengthens Sobi’s hematology franchise by adding Vonjo, a novel oral kinase inhibitor that inhibits JAK2, IRAK1 and ACRV1, while sparing JAK1. Vonjo was granted accelerated approval by the U.S. Food and Drug Administration in February 2022 for treatment of adults with intermediate or high-risk primary or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis with a platelet count below 50 × 109/L.

Sobi will commence a cash tender offer to acquire all issued and outstanding shares of CTI for $9.10 per share per share, corresponding to a total equity value of $1.7 billion.

“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,” said Guido Oelkers president and CEO of Sobi. “There is a large unmet medical need within myelofibrosis, in particular for patients suffering from thrombocytopenia who are inadequately treated by existing medicines. The combination of the talented team at CTI, together with Sobi’s broad U.S. and global hematology capabilities, will help get this much needed new therapy to patients faster and more effectively.”

Under the terms of the merger agreement, Sobi, through a wholly owned, indirect subsidiary, will initiate a tender offer to acquire all the outstanding shares of CTI for a cash purchase price of $9.10 per share, representing a premium of 95 percent based on CTI’s 30-day volume-weighted average price of $4.67 preceding announcement of the transaction. The Board of Directors of CTI has unanimously approved the transaction and recommended that the shareholders of CTI tender their shares in the tender offer.

Photo: Guido Oelkers president and CEO of Sobi

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