June 8, 2015
By Mark Terry, BioSpace.com Breaking News Staff
Swedish Orphan Biovitrum AB, generally called Sobi, announced that its board of directors has ended talks with an unidentified company over a takeover. The Stockholm-based company’s stock plunged about 19 percent on the news.
The company indicated today that it had received a preliminary and conditional non-binding proposal, but the board terminated the talks. Although the potential suitor was unidentified, there’s plenty of speculation that it was Pfizer Inc. . An alternate, though less apparent candidate, was Biogen, Inc.. Both Pfizer and Biogen have partnership deals with Sobi. A spokesperson for Sobi indicated the talks were ended because the board didn’t think they could take the proposal to the company’s owners.
An April 30 article by Reuters cited undisclosed sources as stating that Pfizer was the bidder.
Sobi focuses on treatments for rare diseases, with key therapeutic areas being inflammation and Genetics & Metabolism. Pfizer established a Rare Disease Research Unit in June 2014. The two companies’ previous relationship involves the manufacture of a hemophilia drug, ReFacto.
Sobi, after turning down the mystery deal, indicates it plans to focus on its upcoming launch of Electa and Alprolix. Both drugs are designed to treat hemophilia.
Late last week Sobi announced that Biogen had submitted a Marketing Authorisation Application (MAA) to the European Medicines Agency (EMA) for Alprolix (rFlXFc). Sobi’s partnership with Biogen allows the company to take over final development and commercializing of the drug in Europe, Russia, North Africa and specific companies in the Middl East. Alprolix is a hemophilia B medication.
The largest shareholder of Sobi is Investor AB, which is an investment group controlled by Sweden’s Wallenberg family. The Wallenbergs can be considered a financial dynasty with an extensive family tree of politicians, industrials and philanthropists reaching back five generations. A family member founded Stockholms Enskilda Bank (SEB) and the family currently runs about 20 non-profit foundations, as well as industrial holdings companies Investor AB and FAM.
Sobi stock, until the recent news, has been on an upswing. It had a low of $67.40 on June 8, 2014. It rose to a high of $143.40 on May 11, 2015 and was selling for $132.10 on June 4 prior to the latest news. It is currently selling for $109.80.
Analysts suspect that the market for orphan drugs and rare diseases is so significant that many large pharmaceutical companies will be eyeing Sobi. “The market is so big I wouldn’t be surprised if in the end they (Sobi) will be part of another company,” said Johan Unnerus, analyst with Swedbank in a Reuters article.
When Will Pfizer’s Breakup Happen?
Speculation that the revamping of Pfizer Inc. ’s internal business structure could happen as soon as this year has biotech wondering just when this Big Pharma company could see changes.
Last week an analyst with J.P. Morgan said he thinks there will be a much faster timeline than most of Wall Street had predicted for Pfizer’s stated mission to refocus its efforts on new medicines.
Pfizer initially announced in 2012 that it would be shedding units that were non-essential to that goal. It then promptly sold its nutrition silo to Nestle for $11.85 billion, which was rapidly accompanied by a public spin-off of its animal health business for $2.2 billion.
“While a Pfizer break-up would likely be a 2017 event, we see potential catalysts in 2015-2016,” said Chris Schott, an analyst at J.P. Morgan. “Three years of audited financial statements (2014-2016) are required before any part of Pfizer can be spun off, and we also see 2017 as an attractive time for action as investors see Pfizer’s innovative pipeline clearly contributing to growth and the established business having transitioned to a more stable profile.”
BioSpace wants to know what you think: Will Pfizer be a changed company by the end of 2015?
