GlaxoSmithKline shares were up 0.3% to 1,791p in early morning trading on Wednesday after the pharmaceutical company announced its acquisition of Sierra Oncology for $1.9 billion.
Sierra Oncology is a California-based late-stage biopharmaceutical firm with expertise in targeted therapies for the treatment of rare types of cancer.
GlaxoSmithKline reportedly sought to purchase Sierra Oncology after the company’s differentiated momelotinib was identified as a potential means to address critical unmet requirements of myelofibrosis patients with anaemia.
The group said that Sierra’s momelotinib would serve to complement GlaxoSmithKline’s expertise in haematology.
Myelofibrosis is a fatal form of bone cancer, which impacts the normal production of red blood cells, and normally requires transfusions due to the employment of the commonly used JAK inhibitor.
The treatment has proven difficult as a result of high patient levels of anaemia, with 40% of new patients presenting with the condition and an eventual rate of almost 100% in existing patients, which currently causes a treatment drop-out rate of 30% due to complications arising from the disease.
In January this year, Sierra Oncology made significant progress with its MOMENTUM phase III trial, which indicated that its momelotinib could potentially lead to a beneficial effect on anaemia, while also reducing the need for transfusions and treating myelofibrosis symptoms in patients.
Sierra Oncology currently anticipates a US regulatory submission in Q2 2022 and an EU submission in HY2 2022.
GlaxoSmithKline expects sales contributions to start in 2023 with an anticipated significant growth potential following the completion of the merger.
The acquisition will also support the development of a strengthened portfolio of new specialised medicine and vaccines for the pharmaceutical giant.
“Sierra Oncology complements our commercial and medical expertise in haematology,” said GlaxoSmithKline CCO Luke Miels.
“Momelotinib offers a differentiated treatment option that could address the significant unmet medical needs of myelofibrosis patients with anaemia, the major reason patients discontinue treatment.”
“With this proposed acquisition, we have the opportunity to potentially bring meaningful new benefits to patients and further strengthen our portfolio of specialty medicines.”