Sierra Oncology

Sierra Oncology is a clinical stage drug developer for patients.

Main article: Cancer

History

2022: GlaxoSmithKline bought Sierra Oncology for $1.9 billion

On April 13, 2022, GlaxoSmithKline (GSK) announced the purchase of the biotechnology company Sierra Oncology for $1.9 billion as part of the British drugmaker's efforts to expand the line of cancer control drugs and prepare for the separation of its consumer health unit.

Sierra Oncology specializes in the research, development, and commercialization of therapeutic drugs for the treatment of cancer patients in the United States and internationally. The company's leading drug candidate is SRA737, an oral bioavailable small molecule inhibitor of Checkpoint kinase 1 that is in phase 1 clinical trials to treat patients with advanced forms of cancer. In addition, the company is also developing SRA141, an oral bioavailable inhibitor of small kinase molecules of the cell division cycle 7, which is under preclinical development.

GlaxoSmithKline bought Sierra Oncology for $1.9 billion

The pharmaceutical giant will pay $55 per share in cash for California-based Sierra, a manufacturer of drugs for targeted therapy for rare forms of cancer, GSK said. The purchase price of shares is 39% more than their value at the close of trading on April 12, 2022 - $39.52. The acquisition is expected to close in the third quarter of 2022.

The move is part of CEO Emma Walmsley's effort to strengthen the pharmaceutical business as the company prepares to split with Haleon, maker of Panadol painkillers and Sensodyne toothpaste, in July 2022. The company, which is under pressure from activist investor Elliott Investment Management, said the separation will strengthen the prospects of both companies.

As GSK focuses on promising drugs for cancer, HIV and other diseases, as well as vaccines, the company faces challenges with its drug line. Although the deal is encouraging for GSK, according to to data Bloomberg Intelligence, the company needs to take additional steps to strengthen its portfolio of drugs in the late stages of development.^[1]

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