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Sweden's SOBI offers $1.7 bln to buy CTI BioPharma

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Drugmaker Swedish Orphan Biovitrum (SOBI) said on Wednesday it had agreed to make a $1.7 billion cash offer for CTI BioPharma , a U.S. biopharmaceutical company focused on blood related cancers and rare diseases.

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, to be partly funded via a share issue, sending CTI's stock sharply higher in early U.S. trade.

"Assuming half of the $1.7 billion purchase price equates to a $850 million rights issue, this would equate to 11% of the current equity base," the broker said in a note."We anticipated this reaction, but this cannot stop us from doing what is right for the company," Oelkers said. CTI's VONJO, which treats rare haematological platelet disorders, will add a differentiated therapy to SOBI's existing portfolio, the Swedish group said.

 

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