Pharma giant GSK has bought cancer specialist Sierra Oncology
(Picture: PA)Pharmaceutical giant GlaxoSmithKline (GSK) has bought California-based cancer treatment company Sierra Oncology for $1.9 billion (£1.5 billion).
Sierra is in the process of submitting its momelotinib drug for regulatory approval later in the year.
Momelotinib has been developed to treat patients with myelofibrosis, a rare form of bone marrow cancer, while also improving the symptoms of anaemia that the cancer causes. Anaemia affects a high proportion of myelofibrosis patients and is the key reason patients decide against treatment.
Luke Miels, chief commercial officer at GSK, said: “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.”
The deal represents an offer of $55 (£42.31) per share. Sierra shares closed The stock closed at $39.52 in New York on Tuesday and jumped 37% to just below the offer price in the pre-market.
Stephen Dilly, president and chief executive officer of Sierra Oncology, said: “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.”
The deal presents itself before GSK’s spin off of its consumer health division this summer, now to be named Haleon. The new arm of the company will house brands such as Sensodyne, Panadol, Advil, Voltaren Theraflu, Otrivin, and Centrum.
In a note to investors, JP Morgan Cazenove, commented the Sierra deal would rely on a “commercial execution” of the launch of momelotinib. It expects “the deal to be seen as a small positive, once digested by the market”.
GSK shares rose 5p to 1788.8p.
