It is the fate of the small(er) drug developer – to be taken out just when all the hard yards have been put in.
And it’s exactly what’s happened to Nasdaq-listed Sierra Oncology (NASDAQ:SRRA).
For no sooner has it successfully completed the final clinical evaluation of its lead asset and was preparing to make its regulatory submission than a buyer swoops in.
The UK’s GlaxoSmithKline PLC (LSE:GSK) is paying US$1.9bn, or US$55 a share for Sierra, a near 40% premium to Tuesday’s closing price.
For this, it effectively gets one product, momelotinib, which treats a form of bone marrow cancer called myelofibrosis in a more effective way than the standard of care.
The drug will likely come to the market in 2023 with GSK putting its significant financial heft behind the regulatory process and marketing effort.
"Sierra Oncology (NASDAQ:SRRA) complements our commercial and medical expertise in haematology,” said GSK’s chief commercial officer, 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."
Keen students of the sector will remember that Sierra has licensed a drug candidate, SRA737, from UK tiddler Sareum Holdings PLC (AIM:SAR).
How this impacts the development of the Sareum-discovered checkpoint kinase 1 inhibitor is unknown at this stage.
It is one of only two assets in Sierra’s pipeline.