VANCOUVER, Feb. 6, 2020 /PRNewswire/ - Sierra Oncology, Inc.
(SRRA), a late-stage drug development company focused on the
development and commercialization of momelotinib, a JAK1, JAK2
& ACVR1 inhibitor with a potentially differentiated therapeutic
profile for the treatment of myelofibrosis, today announced that
the Series A convertible voting preferred stock issued in its
recently completed $103.0 million
financing (gross proceeds) have been fully converted into shares of
common stock.
In addition, Gilead Sciences, Inc. (Gilead) has been issued
725,283 shares of common stock and a warrant to purchase an
equivalent amount of common stock, in consideration for
meaningfully reduced royalty rates and elimination of a near term
milestone in an amendment to the Asset Purchase Agreement with
Gilead for momelotinib, as previously announced.
"These announcements bring clarity to Sierra's simplified
go-forward capital structure. We are fortunate to have built
both a healthy balance sheet and a critical mass of high quality,
supportive shareholders, led by Vivo Capital, Longitude Capital,
OrbiMed and Abingworth, investors in our recent financing and from
which we appointed four new directors to Sierra's Board, as well as
Gilead. These stakeholders are aligned with Management in our
focus on achieving regulatory and commercial success with our Phase
3 drug candidate, momelotinib, which has the potential to become an
important therapeutic for both first and second line myelofibrosis
patients, including the majority that suffer from anemia and
thrombocytopenia," said Dr. Nick
Glover, President and CEO of Sierra Oncology.
There are now 10,395,732 total shares of common stock
outstanding and warrants to purchase 11,102,251 shares of common
stock, with an exercise price equal to $13.20 per share. Of these warrants, warrants to
purchase approximately 2,574,727 shares of common stock (the Series
B warrants) may only be exercised by paying the exercise price in
cash, and will expire on the 75th day anniversary
following the announcement of top-line data from MOMENTUM, Sierra
Oncology's ongoing Phase 3 clinical trial of momelotinib. If these
Series B warrants are fully exercised, the company will receive
approximately $34.0 million in
proceeds.
Sierra Oncology previously reported its cash and cash
equivalents totaled $67.7 million as
of September 30, 2019, and that
subsequently it had closed an underwritten public offering with
gross proceeds to Sierra Oncology of $103.0
million. Prior to the end of 2019, a term loan of
$5.0 million was repaid to Silicon
Valley Bank.
About Sierra Oncology
Sierra Oncology is a late stage
drug development company focused on advancing targeted therapeutics
for the treatment of patients with significant unmet medical needs
in hematology and oncology.
Momelotinib, Sierra's lead drug candidate, is a potent,
selective and orally-bioavailable JAK1, JAK2 & ACVR1 inhibitor
with a differentiated therapeutic profile in myelofibrosis
encompassing robust constitutional symptom improvements, a range of
meaningful anemia benefits, including eliminating or reducing the
need for frequent blood transfusions, and comparable spleen control
to ruxolitinib. More than 1,200 subjects have received momelotinib
since clinical studies began in 2009, including more than 820
patients treated for myelofibrosis.
Sierra recently launched the MOMENTUM Phase 3 clinical trial, a
randomized double-blind trial designed to enroll 180 myelofibrosis
patients who are symptomatic and anemic, and who have been treated
previously with a JAK inhibitor. The U.S. Food and Drug
Administration has granted Fast Track designation to momelotinib
for the treatment of patients with intermediate/high-risk
myelofibrosis who have previously received a JAK inhibitor.
Momelotinib is wholly owned by Sierra Oncology and is protected by
patents anticipated to provide potential exclusivity to 2040
in the United States and Europe (inclusive of
potential Patent Term Extension or Supplementary Protection
Certificate).
Sierra is also developing a portfolio of DNA Damage Response
(DDR) assets, consisting of SRA737 and SRA141, and is conducting a
campaign intended to seek non-dilutive strategic options to support
their further advancement. SRA737 is a potent, highly selective,
orally bioavailable small molecule inhibitor of Checkpoint kinase 1
(Chk1), a key regulator of cell cycle progression and the DDR
network, and has demonstrated preliminary clinical efficacy. SRA141
is a potent, selective, orally bioavailable small molecule
inhibitor of Cell division cycle 7 kinase (Cdc7) and has
successfully completed the IND process with the FDA enabling the
commencement of clinical trials. Sierra retains the global
commercialization rights to SRA737 and SRA141.
For more information, please
visit www.sierraoncology.com.
Cautionary Note on Forward-Looking Statements
This
press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including, but not limited to,
statements regarding Sierra Oncology's expectations from current
data, anticipated clinical development activities, potential
benefits of Sierra Oncology's lead product candidate and other
product candidates, Sierra Oncology's capitalization and
sufficiency of its capital resources. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. These statements are based on
management's current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions that could cause
actual results to differ materially from those described in the
forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties, including, among others, the
risk that Sierra Oncology may be unable to successfully develop and
commercialize product candidates, product candidates may not
demonstrate safety and efficacy or otherwise produce positive
results, Sierra Oncology may experience delays in the preclinical
and anticipated clinical development of its product candidates,
Sierra Oncology may be unable to acquire additional assets to build
a pipeline of additional product candidates, Sierra Oncology's
third-party manufacturers may cause its supply of materials to
become limited or interrupted or fail to be of satisfactory
quantity or quality, Sierra Oncology's cash resources may be
insufficient to fund its current operating plans and it may be
unable to raise additional capital when needed, Sierra Oncology may
be unable to obtain and enforce intellectual property protection
for its technologies and product candidates and the other factors
described under the heading "Risk Factors" set forth in Sierra
Oncology's filings with the Securities and Exchange Commission from
time to time. Sierra Oncology undertakes no obligation to update
the forward-looking statements contained herein or to reflect
events or circumstances occurring after the date hereof, other than
as may be required by applicable law.
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SOURCE Sierra Oncology