Viva Biotech's Arthrosi Enters $1.5 Billion Acquisition with Sobi

Viva Biotech's Arthrosi to be Acquired by Sobi for $1.5 Billion

Viva Biotech, a pioneer in biopharmaceutical innovation, recently announced that its invested and incubated company, Arthrosi Therapeutics, will be acquired by Swedish Orphan Biovitrum AB (Sobi) in a deal valued at up to $1.5 billion. This strategic acquisition includes an upfront payment of $950 million, with the potential for an additional $550 million pending various performance metrics and regulatory approvals.

A New Era in Gout Treatment

This acquisition marks a significant step forward for both companies, as Sobi aims to enhance its gout product portfolio with Arthrosi's groundbreaking treatment, pozdeutinurad (AR882). Pozdeutinurad is notable for being a next-generation, once-daily oral URAT1 inhibitor aimed at lowering serum urate levels and alleviating the discomfort experienced by patients suffering from gout and tophaceous gout. With two global Phase 3 clinical studies fully recruited and due to report in 2026, Sobi is notably optimistic about the drug's potential.

Guido Oelkers, President and CEO of Sobi, expressed excitement about the acquisition, stating, “The acquisition of Arthrosi allows us to expand our gout pipeline with a highly differentiated new asset. Pozdeutinurad has the potential to become the therapy of choice for patients who have progressive gout.” Sobi’s ambition to broaden its offerings reflects a deep commitment to improving treatment options for individuals grappling with this challenging condition.

Long-Term Vision and Collaboration

Alongside the acquisition, Arthrosi has also entered into a new statement of work with Viva Biotech’s Langhua Pharmaceutical unit to ensure the continued supply of active pharmaceutical ingredients. This aspect of the agreement highlights the ongoing collaboration and mutual benefits expected between Viva Biotech and its incubated companies.

Dr. Han Dai, Chief Innovation Officer and Head of Viva BioInnovator at Viva Biotech, remarked on the importance of this acquisition, citing, “We have witnessed Arthrosi's continued focus on solving the unmet medical need of gout, marked by clear and disciplined scientific and clinical decision-making.” This is a testament to the progress and innovation that can be achieved through the right partnerships in biotechnology.

Confidence in Future Growth

With this acquisition, Viva Biotech anticipates a gain of approximately $40 million. The actual figures will depend on the successful achievement of regulatory milestones and the performance of pozdeutinurad in clinical settings. The collaboration between Arthrosi and Sobi signifies a momentous opportunity to enhance patient care and address unfulfilled medical needs in gout therapeutics.

The founders of Arthrosi, Dr. Litain Yeh and Dr. Shunqi Yan, expressed their eagerness to work collaboratively with Sobi, emphasizing the shared mission to forward the development of pozdeutinurad. “We believe that Sobi’s global expertise in commercialization will accelerate our shared mission to deliver pozdeutinurad's potentially transformative benefits for individuals living with gout,” stated Dr. Yeh.

About the Companies

Arthrosi Therapeutics, positioned in San Diego, CA, is devoted to advancing treatments for gout with its URAT1 inhibitor. Meanwhile, Sobi is a prominent international biopharmaceutical company focusing on rare diseases, employing approximately 1,900 staff globally. The acquisition and subsequent pipeline developments showcase the viable trajectory in the realm of biotechnology, affirming the strong future of treatments for chronic conditions like gout.

As Viva Biotech solidifies its place as a frontrunner in the biopharmaceutical landscape, it highlights how innovative collaborations and flourishing partnerships can elevate the standards of care for patients worldwide. This acquisition not only marks a significant milestone for Arthrosi but also extends Sobi’s portfolio, promising to deliver considerable advancements in the treatment of gout for many years to come.

Conclusion

The $1.5 billion acquisition of Arthrosi by Sobi symbolizes a promising leap forward in innovative drug development, particularly in tackling the persistent challenges from gout. With robust financial backing and strong collaborative ties, the new alliance positions both companies for outstanding growth and meaningful contributions to patient care.