No-Moat Sobi's Hematology and Immunology Portfolio Is Expanding, but Competition Is Tough

As recently as 2016, Swedish Orphan Biovitrum, or Sobi, was largely a specialty pharmaceutical firm in-licensing rights to market drugs in Europe. Since then, the successful launches of hemophilia drugs Elocta and Alprolix in Europe and other international markets and several acquisitions and collaborations have expanded Sobi's business geographically (to the U.S.) and into new therapeutic areas (in immunology and hematology). Sobi's acquired immunology drugs (Astra's Synagis and Beyfortus, Novimmune's Gamifant, Apellis' Aspaveli/pegcetacoplan) and hematology drugs (Dova's platelet drug Doptelet, ADC's blood cancer drug Zynlonta, and CTI's Vonjo) help bolster long-term growth prospects. We think Sobi is taking the right steps to diversify and boost long-term growth.