GSK Buys US Cancer Company for $1.9 Billion – Latest Pharmacy News | Business | Magazine
GlaxoSmithKline announced on Wednesday April 13 that it had agreed to buy the American group Sierra Oncology, a specialist in drugs against rare forms of cancer, for 1.9 billion dollars.
The purchase, worth £1.6 billion, aims to support the development of new drugs alongside Sierra’s bone marrow cancer treatment, momelotinib.
The deal, which is expected to close this year, represents a nearly 40% premium to Sierra’s closing share price on Tuesday, GSK said in a statement.
Momelotinib could help address the “significant unmet medical needs” of patients with myelofibrosis and anemia, said Luke Miels, chief commercial officer of GSK.
“With this proposed acquisition, we have the opportunity to potentially deliver significant new patient benefits and further strengthen our specialty drug portfolio,” he added.
The acquisition comes as chief executive Emma Walmsley seeks to reshape GSK after facing heavy criticism from investors over the company’s delay in producing Covid jabs and treatments.
Activist investors have criticized GSK for its inability to quickly produce a successful Covid vaccine, unlike its British-Swedish rival AstraZeneca.
GSK is in the process of splitting off its consumer healthcare subsidiary Haleon – a joint venture with its US counterpart Pfizer – to focus on its core pharmaceuticals business.
After rejecting a bid worth £50bn for unit of consumer goods titan Unilever, GSK plans to list the new Haleon on the London Stock Exchange.
The division’s products include Sensodyne toothpaste, painkiller Panadol and cold treatment Theraflu.