Glaxo to Acquire Sierra Oncology for $1.9 Billion

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Glaxo to Acquire Sierra Oncology for $1.9 Billion
14 Apr 2022
5 min read

News Synopsis

GlaxoSmithKline PLC has agreed to buy Sierra Oncology for $1.9 billion in a deal to boost the UK pharmaceutical giant's anti-cancer drug pipeline.

The contract focuses on a drug called momelotinib that treats patients with a rare type of myeloma called myelofibrosis that develops anemia. Glaxo hopes that the treatments Sierra will submit to the Food and Drug Administration for review within the next few weeks will generate sales next year.

The company is also planning to spin off its large consumer healthcare business in July. The unit, which was recently rebranded as Haleon, sells drugstore staples including Sensodyne toothpaste and Panadol painkillers. 

Glaxo said that it would pay $ 55 a share for Sierra in San Mateo, California. This is a 39% premium on Tuesday's closing price. Sierra also offers other treatments that target rare early-stage cancers.

Glaxo is already marketing a drug for multiple myeloma, another form of blood cancer. About three-quarters of doctors treating multiple myeloma also treat myelofibrosis, said Luke Miels, Glaxo's Chief Commercial Officer.

This contract limits the roller coaster journey for momelotinib was sold to Sierra by Gilead Sciences in 2018 after the drug flopped in a lawsuit against Jakafi. Subsequent studies in Sierra found that momelotinib could benefit a subset of anemia patients.

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