Sobi acquires CTI BioPharma for $1.7 billion.

Swedish Orphan Biovitrum (Sobi) has agreed to acquire US biotech CTI BioPharma for $1.7bn, in a deal that will be funded by debt financing from Bank of America and Danske Bank. Sobi's main shareholder, Investor AB, has agreed to subscribe for its pro-rata share of the rights issue, corresponding to about 34.7% of the shares to be issued. The acquisition will fit well with Sobi's focus on hematology and will deliver a medicine that's already cleared for sale in the US market. However, Sobi's shares plunged as much as 17% in early trading after the company said it would acquire all of CTI's outstanding stock for $9.10 per share, almost double CTI's last closing price, and issue new shares to fund as much as half of the transaction.