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Friday, March 31, 2023

Sierra (NASDAQ: SRRA) Confirms Acquisition Agreement with GlaxoSmithKline

Sierra Oncology, Inc. (NASDAQ: SRRA) and GlaxoSmithKline plc (NYSE: GSK) confirmed that they both have inked an acquisition agreement. As per the agreement, GlaxoSmithKline will buy Sierra Oncology for $55 per share of common stock in cash representing an estimated total equity value of $1.9 billion (£1.5 billion).

Sierra Oncology, according to GSK, adds to its commercial and medical experience in haematology. Momelotinib is a novel therapeutic approach that has the potential to address the large unmet medical requirements of myelofibrosis patients with anemia, which is the leading cause of treatment discontinuation. With this planned acquisition, it has the potential to provide major new advantages to patients while also bolstering its specialized medical portfolio.

Sierra Oncology believed that its acquisition by GSK provides the strongest opportunity to achieve its aim of developing targeted treatments to cure rare cancers while also providing compelling and predictable value to its stockholders. It now has a partner with a global infrastructure and oncology knowledge that can help it provide Momelotinib to patients as soon as feasible and on a global scale.

GSK’s Blenrep is complemented by Momelotinib, which builds on the company’s commercial and medical expertise in haematology. GSK’s objective of establishing a strong portfolio of new specialty medicines and vaccines is aligned with the proposed acquisition. GSK anticipates Momelotinib to contribute to GSK’s burgeoning specialty medicines business, with sales slated to start in 2023, with high growth potential and a positive impact on the Group’s adjusted operating margin in the medium term, if the deal closes and regulatory authorities approve Momelotinib.

The acquisition will be completed by a one-step merger in which all outstanding Sierra Oncology shares will be annulled and changed into the right to obtain $55 per share in cash, according to the terms of the deal. The deal is expected to close in the third quarter of 2022 or sooner, subject to customary conditions such as the approval of the merger by at least a majority of Sierra Oncology’s issued and outstanding shares and the expiration or earlier cessation of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

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