European Swedish Orphan Biovitrum To Acquire CTI BioPharma For .7B


Swedish Orphan Biovitrum AB (OTC: BIOVF) has agreed to acquire CTI BioPharma (NASDAQ: CTIC) for $9.10 per share of common stock in an all-cash transaction, representing an implied equity value of approximately $1.7 billion.

The transaction price represents an 89% premium to CTI’s closing share price on May 9, 2023, and a 95% premium to its 30-trading day volume-weighted average price of $4.67.

The transaction will diversify Sobi’s portfolio of hematology medicines through CTI’s lead product, Vonjo (pacritinib), which is FDA-approved for adult myelofibrosis patients with a platelet count below 50 x109/L.

Bringing together Sobi and CTI is expected to enhance Sobi’s commercial footprint in the U.S. CTI will benefit from Sobi’s resources, scale, and strong international presence as it continues to grow and explore new indications and development opportunities for Vonjo.

“The acquisition of CTI is the latest in a series of transformative transactions SOBI has conducted to build its leading rare hematology franchise,” SOBI Chief Executive Guido Oelkers said in a statement.

After the transaction, CTI will become a wholly-owned subsidiary of Sobi.

The planned transaction, unanimously recommended by CTI’s board, is fully funded through debt financing, up to half of which is expected to be refinanced through a rights issue, the Swedish company said.

Investor AB, SOBI’s shareholder, is subscribing to about 34.7% of the rights issue.

The transaction is expected to close in the third quarter of 2023.

In 2022, CTI generated annual sales of $53.9 million, entirely attributable to Vonjo product sales in the U.S.

Price Action: CTIC shares are up 84.40% at $8.89 during the premarket session on the last check Wednesday.

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This article European Swedish Orphan Biovitrum To Acquire CTI BioPharma For $1.7B originally appeared on Benzinga.com

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