GlaxoSmithKline to Acquire Sierra Oncology for $1.9 Billion -- Update
April 13 2022 - 3:24AM
Dow Jones News
By Ian Walker and Joe Hoppe
Pharmaceutical giant GlaxoSmithKline PLC said Wednesday that it
is buying biopharmaceutical company Sierra Oncology Inc. for $1.9
billion as it complements its own expertise, 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.
The acquisition is expected to close in the third quarter of
2022 or earlier. Glaxo forecasts that the purchase will be
accretive to its adjusted earnings per share by 2024, the expected
first full year of sales of Sierra's flagship treatment,
differentiated momelotinib.
Glaxo said differentiated momelotinib is a potential treatment
for patients with both myelofibrosis--a fatal bone marrow
cancer--and anemia, a high unmet medical need.
The treatment complements Glaxo's own existing portfolio and is
set for both a U.S. regulatory submission in the second quarter and
a European submission in the second half. Sales contributions are
expected to start in 2023, with significant growth potential
thereafter.
Glaxo reaffirmed its guidance. It expects 2021-2026 sales growth
of more than 5% and for 10% adjusted operating profit.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
April 13, 2022 03:09 ET (07:09 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Gsk (LSE:GSK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gsk (LSE:GSK)
Historical Stock Chart
From Apr 2023 to Apr 2024
