GlaxoSmithKline Scoops Up Rare Cancer-Focused Sierra Oncology In $1.9B Cash Deal - GSK (NYSE:GSK)

GlaxoSmithKline plc GSK has agreed to acquire Sierra Oncology Inc SRRA for $55 per share in cash, representing an approximate total equity value of $1.9 billion (£1.5 billion).
Sierra's momelotinib complements GSK's Blenrep (belantamab mafodotin), building on GSK's commercial and medical expertise in hematology.
If momelotinib is approved, GSK expects momelotinib will contribute to GSK's growing specialty medicines business, with sales expected to begin in 2023, with a positive benefit to the Group's adjusted operating margin in the medium term.
Momelotinib has a differentiated mode of action with inhibitory activity along key signaling pathways that may lead to beneficial treatment effects on anemia and reduce the need for transfusions while also treating symptoms, the company said.
In January, Sierra Oncology's MOMENTUM phase 3 trial of momelotinib met its primary and key secondary endpoints.
Soon after Phase 3 trial success, Sierra raised $135 million via equity to fund the development of momelotinib.
The transaction is expected to close by Q3 of 2022.
GSK expects the deal to be accretive to adjusted EPS in 2024, the expected first full year of momelotinib's sales.
New GSK reaffirms its full-year 2022 guidance, the medium-term outlook for 2021-2026 of more than 5% sales and 10% adjusted operating profit.
Price Action: SRRA shares are gaining 37.8% at $54.45, and GSK shares are up 0.37% at $46.70 during the premarket trading.