SOBI plummets after it offers to buy CTI BioPharma

CTI Biopharma

10/05/2023 08:49

** Shares in Swedish Orphan Biovitrum (SOBI)  SOBIV.ST 
slump as much as 17% after the drug maker made a $1.7 billion
cash offer to buy U.S. biopharmaceutical firm CTI Biopharma
 CTIC.O  
    ** SOBI said it would make a tender offer for $9.10 per CTI
share, a premium of 89% over Tuesday's closing price of $4.82
    ** RBC says that while the acquisition should strengthen
SOBI's haematology franchise, the purchase premium is
significant, though within peer multiples in the rare disease
space
    ** The brokerage adds that the equity component of the
transaction may initially be perceived negatively
    ** The planned deal is fully funded through debt financing,
up to half of which is expected to be refinanced through a
rights issue
    ** The stock is the worst performer on the pan-European
STOXX 600  .STOXX  index

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))