CTI BioPharma shares added almost 85% on the news that the company would be acquired by Stockholm-based hematology and immunology leader Swedish Orphan Biovitrum AB (Sobi).
Seattle-based CTI is a biopharmaceutical company focused on the development and commercialization of novel therapies for blood-related cancers.
The company said the transaction will diversity Sobi’s portfolio of hematology medicines through its lead product VONJO (pacritinib), a US Food and Drug Administration (FDA)-approved treatment for adult myelofibrosis patients with a platelet count below 50 x109/L.
CTI will be acquired by Sobi for $9.10 per share in an all-cash transaction, representing an implied equity value of about $1.7 billion.
The transaction price represents an 89% premium to CTI’s closing stock price on May 9, 2023, and a 95% premium on its 30 trading design volume-weighted average price of $4.67.
CTI will become a wholly-owned subsidiary of Sobi once the transaction is complete, which is expected to be in the third quarter of 2023.
"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," said CTI CEO Adam Craig in a statement.
"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.”
The company’s stock had added 84.9% at US$8.91 on Tuesday morning.
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