GSK To Acquire Sierra Oncology for $1.9 Bn
GlaxoSmithKline (GSK) has agreed to acquire Sierra Oncology, a San Mateo, California-based late-stage biopharmaceutical company focused on rare forms of cancer, for an approximate total equity value of $1.9 billion.
Sierra Oncology’s lead asset is momelotinib, in Phase III trials for treating myelofibrosis, a cancer of the bone marrow impacting the normal production of blood cells, resulting in anemia.
Momelotinib would add to GSK’s position in hematology, which includes Blenrep (belantamab mafodotin) for treating a certain type of multiple myeloma.
Under the agreement, the acquisition will occur through a one-step merger in which the shares of Sierra Oncology outstanding will be cancelled and converted into the right to receive $55 per share in cash. The transaction is expected to close in the third quarter of 2022 or before, subject to customary conditions, including the approval of the merger by at least a majority of the issued and outstanding shares of Sierra Oncology and the expiration or earlier termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,