CTI BioPharma, a commercial biopharmaceutical company focused on targeted therapies for blood-related cancers, entered into a definitive agreement under which Swedish Orphan Biovitrum AB (SOBI), a provider of hematology, immunology, and specialty care, will acquire CTI in an all-cash transaction, representing an equity value of approximately $1.7 billion.

The transaction, which is expected to close in the third quarter of 2023, is also expected to diversify Sobi’s portfolio of leading hematology medicines through CTI’s lead product, VONJO (pacritinib), which is FDA-approved for the treatment of adult myelofibrosis patients with a platelet count below 50 x109/L. Bringing together Sobi and CTI is expected to enhance Sobi’s commercial footprint in the U.S., and CTI will benefit from Sobi’s resources, scale and strong international presence as it continues to grow and explore new indications and development opportunities for VONJO.

Following the completion of the transaction, CTI will become a wholly owned subsidiary of Sobi. Together, Sobi and CTI expect to advance their shared mission to change the treatment paradigm for underserved patient communities suffering from rare diseases through new, innovative, and effective medicines and therapies.

“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 President, Chief Executive Officer, and Interim Chief Medical Officer of CTI BioPharma. “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. As we enter CTI’s next chapter with the support of Sobi, we’d like to recognize the extraordinary work of our talented employees, who will play a key role in the success of the combined company.”