Juicy Nordic drug buyout needs safety label

Investor AB

02/09/2021 10:54

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Neil Unmack
    LONDON, Sept 2 (Reuters Breakingviews) - Advent and GIC are
paying $8 bln for Swedish Orphan Biovitrum, which specialises in
rare-disease treatments. The new owners will need to invest in
fresh products and fend off rivals, all while keeping staff. The
potential returns look appealing but come with a fair dose of
risk.    
    Full view will be published shortly.
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    CONTEXT NEWS
    - Advent International and GIC said on Sept. 2 they had
offered to buy rare-disease pharmaceutical specialist Swedish
Orphan Biovitrum (SOBI) for 69.4 billion Swedish crowns ($8
billion). 
    - The 235 Swedish crown per share offer is a 54.7% premium
to SOBI’s average share price in the 90 trading days to Aug. 25,
the two companies said in a statement. SOBI’s board has
recommended the offer. Two of SOBI’s shareholders, Investor AB
and Fjarde AP-Fonden, with 36.5% and 7% stakes respectively,
have also accepted it, subject to certain conditions.    
    - SOBI makes treatments for diseases including haemophilia.
It also manufactures immunology drugs like Gamifant, for rare
immune disorder primary haemophagocytic lymphohistiocytosis, and
Synagis, for respiratory syncytial virus.
    - SOBI shares were up 24% at 237.50 Swedish crowns by 0751
GMT on Sept. 2.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Swedish drugmaker SOBI soars on $8 bln bid from Advent and
Aurora       urn:newsml:reuters.com:*:nL8N2Q41JO
Offer statement    https://news.cision.com/agnafit-bidco-ab/r/advent-and-gic--through-agnafit-bidco-ab--announce-a-recommended-cash-offer-of-sek-235-per-share-to-,c3408575
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Ed Cropley and Oliver Taslic)
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