Bioverativ and Swedish pharmaceutical company, Sobi, recently announced a $11.6 billion agreement in which Sobi would acquire Bioverativ. The acquisition is set to strengthen Sobi`s position in the market for rare diseases and boost their revenue.
Bioverativ, a spin-off of biotech giant Biogen, specializes in treatments for hemophilia and other rare blood disorders. Sobi, on the other hand, has a broader portfolio of products for rare diseases, including therapies for hemophilia, rheumatology and immunology.
The acquisition will enable Sobi to expand their hemophilia franchise, which is already a major part of their business. Hemophilia is a rare disease that affects blood clotting, and the market for treatments is projected to grow quickly over the next few years.
Bioverativ`s flagship product, Eloctate, is a leading therapy for hemophilia A, and their other treatments for hemophilia and related bleeding disorders are also strong performers. Sobi has a complementary range of hemophilia therapies, including products for those with inhibitors, making the acquisition a strategic fit.
The deal is expected to be completed in the second quarter of 2018, subject to regulatory approval. The boards of both companies have already given their unanimous approval for the acquisition.
The agreement will also bring benefits to Bioverativ shareholders, who will receive $105 per share in cash upon the completion of the deal. This represents a premium of 64% over Bioverativ`s closing price on January 19, 2018.
The acquisition of Bioverativ by Sobi is a significant development in the pharmaceutical industry, as it demonstrates the growing importance of rare diseases and the need for companies to have a diverse portfolio of treatments. It is also a testament to the value of Bioverativ`s research and development in hemophilia and other rare blood disorders.
In conclusion, Sobi`s acquisition of Bioverativ is a strong strategic move that will enable the Swedish pharmaceutical company to expand their hemophilia franchise and gain a foothold in the growing market for rare diseases. The deal is set to benefit both companies and their shareholders, and demonstrates the importance of a diversified portfolio of treatments in the pharmaceutical industry.