Sobi bets $275 million on a rare disease drug

Swedish Orphan Biovitrum AB will pay partner Apellis Pharmaceuticals $275 million upfront to amend a royalty agreement for the rare disease drug Aspaveli, the company said Tuesday.

The payment reduces Sobi's royalty obligations to Apellis for sales outside the U.S. by 90% until a certain cap is reached.

The deal also includes up to $25 million in milestone payments contingent on European regulatory approvals for the drug in new indications.

Aspaveli, known as Empaveli in the U.S., is currently approved to treat paroxysmal nocturnal haemoglobinuria, a rare blood disorder.

It is now under review in the European Union and the U.S. for two rare kidney diseases, C3 glomerulopathy and primary immune complex membranoproliferative glomerulonephritis.

An opinion from the European Medicines Agency is expected before the end of the year, according to the company.

"We are pleased to continue our ongoing partnership with Apellis and share their strong belief in Aspaveli/EMPAVELI’s potential to deliver significant long-term growth,” said Guido Oelkers, Chief Executive Officer at Sobi.

The agreement comes just days after Sobi won U.S. approval for another of its rare disease drugs, Gamifant, to treat a complication of Still's disease.

Sobi has been expanding its rare disease business, which included the acquisition of CTI BioPharma in 2023.