GlaxoSmithKline plc Strikes Deal to Acquire Sierra Oncology
Apr 13, 2022 By MarketDepth
Sierra Oncology, Inc (Nasdaq: SRRA) surged over 37% in premarket trading after GlaxoSmithKline plc (GSK) agreed to acquire the former for $1.9 billion.
Cash per Share
GSK will pay $55 per share of common stock in cash representing an approximate total equity value of $1.9 billion for the California-based, late-stage biopharmaceutical company focused on targeted therapies for the treatment of rare forms of cancer. Sierra Oncology’s differentiated momelotinib has the potential to address the critical unmet medical needs of myelofibrosis patients with anaemia, and the proposed acquisition would see momelotinib complements GSK’s existing expertise in haematology.
“Sierra Oncology complements our commercial and medical expertise in haematology. Momelotinib offers a differentiated treatment option that could address the significant unmet medical needs of myelofibrosis patients with anaemia, the major reason patients discontinue treatment. With this proposed acquisition, we have the opportunity to potentially bring meaningful new benefits to patients and further strengthen our portfolio of specialty medicines.”Luke Miels, Chief Commercial Officer, GSK
The acquisition will be effected through a one-step merger in which the shares of Sierra Oncology outstanding will be canceled and converted into the right to receive $55 per share in cash, representing a premium of approximately 39% to Sierra Oncology’s closing stock price on April 12th, 2022.
“Uniting with GSK creates the best opportunity for Sierra Oncology to realise its mission of delivering targeted therapies that treat rare forms of cancer while also delivering compelling and certain value for our stockholders. Now we have a partner with a global infrastructure and oncology expertise that enables us to deliver momelotinib to patients as quickly as possible and on a global scale.”Stephen Dilly, MBBS, PhD, President and Chief Executive Officer, Sierra Oncology