(Finance) – The British pharmaceutical company GlaxoSmithKline (GSK) has entered into a agreement to acquire Sierra Oncology, a Nasdaq-listed biopharmaceutical company focused on therapies for the treatment of rare forms of cancer. $ 55 will be paid (in cash) for each common share, equal to one total of $ 1.9 billion. The price represents a premium of approximately 39% over the closing stock price of Sierra Oncology on April 12, 2022, and a premium of approximately 63% over the volume-weighted average price of the past 30 trading days.
“Sierra Oncology complements our commercial and medical expertise in hematology. Momotinib offers a differentiated treatment option that could meet significant unmet medical needs of myelofibrosis patients with anemia, the main reason patients discontinue treatment, ”commented Luke Miels, GSK’s Chief Commercial Officer.
Sierra Oncology’s board of directors unanimously recommended that Sierra’s shareholders vote in favor of approving the merger. Additionally, Sierra Oncology shareholders who hold approximately 28% of the outstanding shares have decided to vote in favor of approving the merger. GSK considers the transaction a business combination and expects that will increase adjusted earnings per share in 2024the first full year of momotinib sales.