GENE ONLINE|News &
Opinion
Blog

2021-12-06|

AstraZeneca Blocks Private Equity Buyout of Swedish Pharma Sobi

by Sahana Shankar
Share To

Swedish Orphan Biovitrum AB (Sobi), a Swedish drugmaker specializing in haematology, immunology products and specifically for rare diseases, lost a buyout deal due to strong opposition from one of their stakeholders, AstraZeneca. Advent International and Singapore-based investment fund GIC were in talks with SobI for a $7.6 billion takeover. However, AstraZeneca opposed the bid by withholding its 8% stake. 

Dubbed as possibly the largest take-private transaction in European healthcare in 2021, Advent and GIC offered a 34% premium on Sobi’s share price in late August. Expecting a capital requirement for many of their products in late-stage development, Sobi accepted the bid. The deal fell through since Sobi failed to reach the required approval from 90% of shareholders. Despite backing from top stakeholder Investor AB, who was willing to tender their 35% stake, AstraZeneca’s objection resulted in 87% approval. 

 

A Keen Stake in Sobi

 

AstraZeneca partnered with Sobi in 2018 to market Synagis, a drug for lower respiratory tract infections, in the US. Speculation is rife that private-equity ownership of Sobi may have transferred the rights for Synagis to a competitor. Another line of reasoning puts the focus on AstraZeneca’s interest in Sobi’s rare disease-related drugs. According to equity research analyst from Handelsbanken, Mattias Haggblom, AstraZeneca might be strapped for cash since their $39 billion takeover of Alexion Pharmaceuticals and may want to wait for a while before another acquisition. 

Sobi’s stock prices fell 23% on 3rd December 2021, following the failed bid. Chairman Håkan Björklund commented on the bid process and said, “As we have announced, the Board supported the public offer by Advent and GIC, as we believed in the strategic merit of the transaction. Subsequent discussions regarding the potential execution of the transaction have been directly dealt with between the bidding consortium and Sobi shareholders.”

©www.geneonline.com All rights reserved. Collaborate with us: [email protected]
Related Post
JPMA on Japan’s Biotech Industry: Cancer, Cardiovascular, and Aging Lead Diseases; Antibody, Cell, and Gene Therapies Top the Innovation List
2024-10-17
Can New GLP-1 Contenders Disrupt the Weight-Loss Giants, Lilly and Novo, in the Battle for Market Dominance?
2024-10-03
Immunai and AstraZeneca’s $18 Million AI Collaboration to Transform Cancer Drug Development
2024-09-26
LATEST
The Golden Age of Medicine: Advancements in Novel Modalities and Therapeutic Areas
2024-11-01
Strengthening Biotech Ties: Highlights from the BioConnect Forum and Future Collaboration between Taiwan and Australia
2024-10-31
AusBiotech 2024 Opening Ceremony: From Local to Global – Shaping the Future of Life Sciences and Biotech in Australia
2024-10-30
AMS BioteQ Showcases Game-Changing Innovations at Medical Japan 2024
2024-10-29
AusBiotech 2024 to Highlight Global Areas of Interest, Current Trends, and Research Directives in Australia’s Diverse Biotech Industry
2024-10-25
BPIPO and DCB Collaborate with NVIDIA to Host AI Forum, Focusing on Cross-Domain Integration for Precision Health
2024-10-25
CDMO Samsung Bio Secures Record $1.24 Billion Biopharma Manufacturing Contract, Raising Total 2024 Deal Value to Over $3.3 Billion
2024-10-23
EVENT
2024-11-04
BIO-Europe 2024
Stockholm, Sweden
Scroll to Top