Seattle-based CTI BioPharma (Nasdaq: CTIC) is being acquired by pharmaceutical company Swedish Orphan Biovitrum AB (Sobi) for about $1.7 billion cash.
The companies announced the deal on Wednesday and expect it to close in the third quarter. According to a news release, the deal will grow Sobi's drug portfolio and increase its presence in the U.S., while CTI will gain access to Sobi's resources and international presence.
"We are delighted to announce this transaction," Adam Craig, CTI's CEO, said in the release. "By joining forces, we have access to additional financial and development resources."
Sobi is paying $9.10 per share of CTI, an 89% premium over its closing price on Tuesday. CTI's board has unanimously approved the deal, according to the release, and CTI will not be releasing first-quarter financial results due to the pending deal.
CTI had 127 full-time employees at the end of last year, according to a regulatory filing. Sobi, which is based in Stockholm, said in a release it has about 1,600 employees across Europe, North America, the Middle East, Asia and Australia. The companies didn't say if all of CTI's employees are joining Sobi or what will happen to the CTI brand.
CTI was founded in 1992. The company's lead drug, Pacritinib, is aimed at blood cancers like myelofibrosis. The drug is approved for certain adults in the U.S. Former CEO James Bianco stepped down in 2016 after the Food and Drug Administration halted Pacritinib trials following patient deaths. The company laid off about half of its staff in 2018 but has steadily increased its workforce and stock price in recent years. CTI raised $60 million through a rights offering in 2020, when it had roughly 25 employees.
Sobi, meanwhile, has treatments aimed at hemophilia, thrombocytopenia and alkaptonuria. The company generated $1.84 billion in revenue last year and is listed on Nasdaq Stockholm.
