Here’s How Much Montco’s GlaxoSmithKline Is Paying to Acquire a Biotech Company in California

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GlaxoSmithKline to acquire Sierra
Image via GlaxoSmithKline .

GlaxoSmithKline, with significant operations in Upper Providence, has agreed to acquire California-based Sierra Oncology for $1.9 billion, writes John George for the Philadelphia Business Journal.

GlaxoSmithKline will pay the shareholders of the biotechnology company $55 for each share of stock they hold, according to the terms of the deal. This price represents a 39 percent premium on the company’s $39.52 per share stock price at market close on Tuesday.

The announcement bumped up Sierra Oncology’s stock by nearly 40 percent to $54.48 per share on Wednesday morning.

Meanwhile, GlaxoSmithKline saw its stock fall slightly to $46.30 per share in yesterday’s mid-morning trading.

Sierra Oncology develops targeted therapies aimed at treating rare forms of cancer. Momelotinib, its lead drug candidate, is a potential treatment for myelofibrosis patients who have anemia. The company plans to file a new drug applications for the treatment in both the United States and Europe later in the year.

“Sierra Oncology complements our commercial and medical expertise in hematology,” said Luke Miels, GlaxoSmithKline’s chief commercial officer. “Momelotinib offers a differentiated treatment option that could address the significant unmet medical needs of myelofibrosis patients with anemia, the major reason patients discontinue treatment.”

Read more about the acquisition in the Philadelphia Business Journal.

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