GlaxoSmithKline Agrees to buy Sierra Oncology for $1.9bn


GlaxoSmithKline Agrees to buy Sierra Oncology for $1.9bn

British pharmaceuticals producer GlaxoSmithKline has agreed to buy late-stage biopharmaceutical company Sierra Oncology.

GlaxoSmithKline said on Wednesday that it would pay 55 dollars per share of common stock in cash, representing an approximate total equity value of 1.9 billion dollars.

The acquisition is to be carried out through a one-step merger in which the outstanding shares of Sierra Oncology will be cancelled and converted into the right to receive 55 dollars per share in cash.

Further, GlaxoSmithKline will account for the transaction as a business combination and expects it to be accretive to adjusted earnings per share in 2024, the expected first full year of the sales of the drug momelotinib for myelofibrosis patients.

PSN Foundation Will Impact the Welfare of Pharmacists and Nigerians-Yakasai

In addition, new GlaxoSmithKline reaffirmed its full-year 2022 guidance and long-term sales targets.

As at Dec. 31, 2021, the value of the gross assets of Sierra Oncology to be acquired is109 million dollars.

However, the net losses of the business were 95 million dollars for the 12 months ending on the same date.

Sierra Oncology’s differentiated momelotinib has the potential to address critical unmet medical needs of myelofibrosis patients with anemia, the statement said.

Momelotinib complements GlaxoSmithKline’s Blenrep, building on its commercial and medical expertise in haematology, with Sierra Oncology anticipating U.S. regulatory submission in the second quarter of the year and an EU submission in the second half of 2022.

FIP President Tasks Pharmacists on Resolving COVID-19 Related Issues

The company noted that the proposed acquisition aligns with GlaxoSmithKline’s strategy of building a strong portfolio of new specialty medicines and vaccines.

If the transaction is completed and momelotinib is approved by regulatory authorities, GlaxoSmithKline said it expects momelotinib to contribute to its growing specialty medicines business.

According to GlaxoSmithKline, sales are expected to begin in 2023, with significant growth potential and a positive benefit to the group’s adjusted operating margin in the medium term.


Please enter your comment!
Please enter your name here