CTI BioPharma shares soar 83% after Swedish Orphan Biovitrum announces $1.7 billion deal for the biotech

Swedish Orphan Biovitrum AB, or Sobi, on Wednesday announced that it has entered into an agreement to acquire U.S.-based CTI BioPharma Corp. (CTIC) in a deal valued at $1.7 billion. Shares of CTI soared 83% in premarket trading, while Sobi stock fell 14% in Stockholm. The Swedish drugmaker said it will offer $9.10 for each share of CTI, which focuses on blood-related cancers and rare diseases. The offer represents a premium of 88.8% over CTI's the Tuesday closing price of $4.82 per share. "CTI represents a perfect fit for Sobi's haematology 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, in a statement. "There is a large unmet medical need within myelofibrosis, in particular for patients suffering from thrombocytopenia who are inadequately treated by existing medicines." Sobi said the acquisition is expected to be highly accretive to its revenue and margins, starting in the near-term. CTI's board of directors has unanimously approved the deal and recommended it to shareholders.

-Barbara Kollmeyer

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05-10-23 0545ET

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