Sobi converts licensing deal on emapalumab to full acquisition

Rare diseases specialist Swedish Orphan Biovitrum  (STO: SOBI) saw its shares gain nearly 3% to 175.50 kronor by mid-afternoon, after it revealed plans to take full control of a investigational compound that it had previously only licensed.

Sobi has signed an agreement to acquire, from Novimmune’s shareholders, a newly-established company owning emapalumab and related assets, giving Sobi access to world-class R&D capabilities in the field of Immunology.

The acquisition means that the exclusive licence agreement announced in July last year with Novimmune will be superseded. Under that deal, Novimmune pocketed an upfront payment of around $50 million. At that time, Sobi estimates potential revenues from emapalumab could be $280 million-$340 million per year.