GSK punts $1.9 billion on Sierra Oncology acquisition

US biopharma company Sierra Oncology (Nasdaq: SRRA) saw its shares leap nearly 37% to $ 54.05 in pre-market trading today, as it was revealed that it has agreed to be acquired by UK pharma major GlaxoSmithKline (LSE: GSK).

Under the deal, GSK will pay $55 per share of common stock in cash representing an approximate total equity value of $1.9 billion (£1.5 billion) for the company, along with its lead candidate momelotinib, a treatment for myelofibrosis, a fatal cancer of the bone marrow impacting the normal production of blood cells.

Momelotinib has a differentiated mode of action with inhibitory activity along key signalling pathways. This activity may le ad to beneficial treatment effects on anemia and reduce the need for transfusions while also treating symptoms. In January THISYEAR, Sierra Oncology announced positive top-line results from the MOMENTUM Phase III trial. The study met all its primary and key secondary endpoints, demonstrating that momelotinib achieved a statistically-significant and clinically-meaningful benefit on symptoms, splenic response, and anaemia.