Swedish drugmaker Orphan Biovitrum (SOBI) has agreed to an $8 billion takeover bid from US private equity firm Advent International and Aurora Investment, an affiliate of capital markets group GIC. The SOBI – GIC deal, once finalized, could be the largest-ever leveraged buyout in Sweden. SOBI shares rose by 27 percent to SKr243.50, way ahead of the recommended offer price of Skr235, suggesting that investors are hopeful for a bidding war in the coming weeks.
The Advent – GIC bidding company will benefit from the Swedish biotech firm leaving the stock market as it needs substantial investments to develop treatments for rare diseases. SOBI’s hemophilia business is under price pressure and the Nordic company has accumulated massive debt after a series of acquisitions.
Tom Allen, managing director of Advent, said: “We are attracted by SOBI’s product portfolio, R&D expertise, product launch capabilities and its highly skilled team of employees. Over the coming years, SOBI will continue its ongoing transformation towards becoming a global leader in rare diseases.”
The SOBI – GIC takeover bid spurred speculation of another bidder on the horizon as takeover talk has surrounded the Swedish drugmaker for several years.
