By Ian Walker

Pharmaceutical giant GlaxoSmithKline PLC said Wednesday that it is buying biopharmaceutical company Sierra Oncology Inc. for $1.9 billion, and backed its guidance.

GlaxoSmithKline will pay $55 per share in cash, a 39% premium to its closing price of $39.52 on Tuesday. The deal has the support of Sierra's board as well as shareholders owning 28% of its stock.

Glaxo reaffirmed its guidance. It expects 2021-2026 sales growth of more than 5% and for 10% adjusted operating profit.

The deal is expected to close in the third quarter of this year.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

April 13, 2022 02:42 ET (06:42 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
Gsk (LSE:GSK)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Gsk Charts.
Gsk (LSE:GSK)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Gsk Charts.