Sep 3, 2021 - Economy

Advent and GIC offer to buy drugmaker Sobi for around $8 billion

Illustration of a red cross.

Illustration: Brendan Lynch/Axios

Advent International and GIC offered to buy Swedish Orphan Biovitrum (STO: SOBI), a drugmaker primarily focused on rare diseases, for around $8 billion.

Why it matters: It would be the largest-ever buyout of a Swedish company, and comes shortly after rival rare disease biotech Alexion was acquired for a whopping $39 billion by AstraZeneca.

  • (My copy editor, Bryan McBournie, adds: "Between Swedish Orphan Biovitrum and the return of ABBA, it’s a big day for Sweden.")

Investor reax: Sobi shares soared well past the buyout offer price, suggesting that investors expect a bidding war. SOBI's top shareholder, Investor AB, said it supports the Advent offer, but said it would side with a superior offer.

The bottom line: "Sobi has built up its immunology division and looked to the U.S. for growth in recent years to reduce its dependence on hematology and Europe ... Sobi has previously been the subject of takeover speculation including in 2015 when it was rumored that Pfizer was among the interested parties." — Richard Milne, FT

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