CTI BioPharma

History

2023: Orphan Biovitrum bought CTI BioPharma for $1.7 billion

On May 10, 2023, the Swedish pharmaceutical company Swedish Orphan Biovitrum (Sobi) announced the conclusion of an agreement on the acquisition of the American CTI BioPharma. The transaction amount will be $1.7 billion in cash.

CTI BioPharma is a biopharmaceutical company specializing in the creation of low-toxic and effective drugs against malignancies, primarily against rare blood cancers. One of the company's products is Vonjo (pacritinib), which is designed to treat adult patients with moderate to high-risk primary or secondary myelofibrosis. This is an unusual type of bone marrow cancer that disrupts the normal production of blood cells in the body. Pacritinib is an oral kinase inhibitor with JAK2, IRAK1, and ACRV1 specificity (without JAK1 inhibition).

Sobi Announces Agreement to Acquire U.S. CTI BioPharma

In accordance with the terms of the contract, Sobi, through a wholly owned subsidiary, will initiate a tender offer to acquire all outstanding shares of CTI BioPharma at a price of $9.1. This represents a premium of 95% based on the weighted average value of the securities of the acquired structure at $4.67 for 30 days by May 10, 2023. CTI BioPharma's board of directors unanimously approved the deal. The merger is planned to be completed in the third quarter of 2023, subject to the necessary acquisition conditions.

The purchase is expected to significantly increase Sobi's revenue and earnings. In addition, the Swedish pharmaceutical company will have the opportunity to expand its product range, as well as strengthen its position in the field of rare hematology. In general, the deal provides a uniquely differentiated therapy that meets the failed medical needs of patients suffering from myelofibrosis. It is noted that the combination of the talented CTI BioPharma team and Sobi's extensive capabilities in the field of hematology in the United States and the world will help to provide the necessary therapy to people suffering from cancer faster and more efficiently.^[1]