CEM REPORT | British pharmaceutical producer GlaxoSmithKline (GSK) has agreed terms with Sierra Oncology to acquire the later for 1.9 billion dollars at 55 dollars per share.
According to a statement on Wednesday, GSK, said it would be acquiring late-stage biopharmaceutical company Sierra Oncology for 55 dollars per share of common stock in cash, representing an approximate total equity value of 1.9 billion dollars.
The one-step acquisition merger will cancel and convert Sierra Oncology outstanding shares righting them to receive 55 dollars per share in cash.
Sierra Oncology gross asset value to be acquired at 31, Dec 2021 was 109 million dollars while it net losses stood at 95 million dollars for 12 months ending on the same date.
The statement also said, Sierra Oncology’s differentiated momelotinib has the potential to address critical unmet medical needs of myelofibrosis patients with anemia.
According to News Agency of Nigeria (NAN), Momelotinib complements GSK’s Blenrep, building on its commercial and medical expertise in haematology.
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GlaxoSmithKline added that the acquisition aligns with its strategy of building a strong portfolio of new specialty medicines and vaccines.
With U.S. regulatory submission anticipated in the second quarter of the year and an EU submission in the second half of 2022. GlaxoSmithKline said it expects momelotinib to contribute to its growing specialty medicines business if the transaction is completed and momelotinib is approved.
GSK, added that sales are expected to begin in 2023, and projects a significant growth potential.
GlaxoSmithKline will be expected to account for the transaction as a business combination and adjust share earnings in the first year of sale of the momelotinib drug for myelofibrosis patients.