Sierra Oncology Inc (NASDAQ: SRRA) shares are trading significantly higher Wednesday after the company announced it will be acquired by GlaxoSmithKline PLC (NYSE: GSK) for $55 per share in cash, representing an approximate total equity value of $1.9 billion.
GSK believes Sierra Oncology's momelotinib has the potential to address the critical unmet medical needs of myelofibrosis patients with anaemia.
Momelotinib has a differentiated mode of action with inhibitory activity along key signaling pathways. Said activity may lead to beneficial treatment effects on anaemia and reduce the need for transfusions while also treating symptoms.
The transaction is expected to close in the third quarter, if not before.
Sierra Oncology is a California-based, late-stage biopharmaceutical company focused on targeted therapies for the treatment of rare forms of cancer.
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SRRA Price Action: Sierra Oncology has traded as low as $14.91 over a 52-week period. It's making new 52-week highs Wednesday.
According to data from Benzinga Pro, the stock was up 38.2% at $54.61 at press time.
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