Sobi agrees to buy CTI BioPharma for $1.7bn

Swedish Orphan Biovitrum (Sobi) has entered into a definitive agreement to buy biopharmaceutical company CTI BioPharma in an all-cash deal valued at $1.7bn.

Sobi will start a tender offer through its wholly owned indirect subsidiary to buy all outstanding CTI shares for $9.10 for each share of common stock in cash.

The acquisition will strengthen Sobi’s haematology medicines portfolio with the addition of CTI’s lead product Vonjo (pacritinib), a novel oral kinase inhibitor of JAK2, IRAK1 and ACRV1.

The deal will also enhance the commercial footprint of Sobi in the US.

CTI is expected to benefit from the resources, scale and international presence of Sobi in expanding and investigating new indications and development opportunities for Vonjo.

CTI BioPharma president, CEO and interim chief medical officer Adam Craig stated: “We are delighted to announce this transaction, which delivers a compelling all-cash premium to our shareholders while positioning CTI to unlock the full potential of Vonjo in treating myeloproliferative disease.

“In Sobi, we’ve found a global partner whose mission, culture and strategic business priorities are aligned with ours, and by joining forces we have access to additional financial and development resources to drive and enhance the growth of Vonjo.”

Vonjo has received the US Food and Drug Administration’s approval to treat myelofibrosis in adult patients with a platelet count below 50 x109/L .

CTI’s board of directors has unanimously approved the transaction, which will be concluded in the third quarter of 2023.

The company will then become a wholly owned subsidiary of Sobi.