REG - GSK PLC - GSK completes acquisition of Sierra Oncology

GSKAnnouncement

01/07/2022 15:00

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RNS Number : 0769R  GSK PLC  01 July 2022

Issued: 1 July 2022, London UK

 

GSK completes acquisition of Sierra Oncology

 

 

GSK plc (LSE/NYSE: GSK) today announced it has completed the acquisition of
Sierra Oncology, Inc. (Sierra Oncology), a California-based biopharmaceutical
company focused on targeted therapies for the treatment of rare forms of
cancer. The acquisition was approved by Sierra Oncology's shareholders on 29
June 2022.

 

As previously announced
(https://www.gsk.com/en-gb/media/press-releases/gsk-reaches-agreement-to-acquire-late-stage-biopharmaceutical-company-sierra-oncology-for-19bn/)
, the acquisition of Sierra Oncology includes momelotinib, a late-stage
potential new medicine with a unique dual mechanism of action that may address
the critical unmet medical needs of myelofibrosis patients with anaemia. In
addition, momelotinib complements GSK's Blenrep (belantamab mafodotin); the
acquisition builds on the company's expertise in haematology and aligns with
GSK's strategy of building a strong portfolio of specialty medicines and
vaccines. If approved, momelotinib will contribute to GSK's growing specialty
medicines business, with a US launch anticipated in 2023.

 

Luke Miels, Chief Commercial Officer, GSK, said: "This acquisition expands our
innovative oncology portfolio, demonstrating our commitment to improving
patient outcomes and creating value for shareholders. We now have a late-stage
differentiated molecule in momelotinib, which could potentially address a
significant unmet need in myelofibrosis patients with anaemia. Our focus is
now on execution."

 

In June 2022, Sierra Oncology presented the complete data from the MOMENTUM
phase III trial at the 2022 American Society of Clinical Oncology (ASCO)
Annual Meeting. The trial met all its primary and key secondary endpoints,
demonstrating that momelotinib achieved a statistically significant and
clinically meaningful benefit on symptoms, splenic response, and anaemia.
Sierra Oncology submitted a New Drug Application to the US Food and Drug
Administration in June, and GSK anticipates a regulatory submission in Europe
in the second half of 2022.

 

Financial considerations

Upon completion of the acquisition, GSK acquired all outstanding shares of
Sierra Oncology for $55 per share in cash, representing an approximate total
equity value of $1.9 billion (£1.6 billion at current exchange rates). The
per-share price represented a premium of approximately 39 per cent to Sierra
Oncology's closing stock price on 12 April 2022 and approximately 63 per cent
to Sierra's volume-weighted average price (VWAP) over the last 30 trading
days.

 

About myelofibrosis

Myelofibrosis is a rare blood cancer that results from dysregulated JAK-STAT
signalling and is characterised by constitutional symptoms, splenomegaly
(enlarged spleen) and progressive anaemia. From prior studies with
momelotinib, we know approximately half of myelofibrosis patients are
moderately to severely anaemic when eligible for JAK inhibitor treatment.
Furthermore, currently approved JAK inhibitors only address symptoms and
splenomegaly and are myelosuppressive. This can lead to worsening anaemia,
resulting in dose reductions that potentially reduce treatment effect.

 

Myelofibrosis affects approximately 20,000 patients in the US, with
approximately 40% of patients already anaemic at time of diagnosis and nearly
all patients estimated to eventually develop anaemia. 1 (, 2  ) Patients
treated with the most commonly used JAK inhibitor will often require
transfusions, and more than 30% will discontinue treatment due to anaemia. 3 
Anaemia and transfusion dependence are strongly correlated with poor prognosis
and shortened survival. 4 

 

About momelotinib

Momelotinib has a differentiated mode of action with inhibitory ability along
three key signalling pathways: activin A receptor, type I (ACVR1)/activin
receptor-like kinase-2 (ALK2), Janus kinase (JAK) 1, and JAK2. This activity
may lead to beneficial treatment effects on anaemia and reduce transfusion
dependence while treating myelofibrosis symptoms and splenic response.

 

GSK in oncology

GSK is focused on maximising patient survival through transformational
medicines. GSK's pipeline is focused on immuno-oncology, cell therapy, tumor
cell targeting therapies and synthetic lethality. Our goal is to achieve a
sustainable flow of new treatments based on a diversified portfolio of
investigational medicines utilising modalities such as small molecules,
antibodies, antibody-drug conjugates and cell therapy, either alone or in
combination.

 

About GSK

GSK is a science-led global healthcare company. For further information please
visit www.gsk.com/about-us (https://www.gsk.com/en-gb/about-us/) .

 

 

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Cautionary statement regarding forward-looking statements

GSK cautions investors that any forward-looking statements or projections made
by GSK, including those made in this announcement, are subject to risks and
uncertainties that may cause actual results to differ materially from those
projected. Such factors include, but are not limited to, those described in
the Company's Annual Report on Form 20-F for 2021, GSK's Q1 Results for 2022
and any impacts of the COVID-19 pandemic.

 

 

 

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 1  Naymagon, L., & Mascarenhas, J. (2017). Myelofibrosis-Related Anemia:
Current and Emerging Therapeutic Strategies. HemaSphere, 1(1), e1.
https://doi.org/10.1097/HS9.0000000000000001
(https://doi.org/10.1097/HS9.0000000000000001)

 2  Chifotides, H.T., Bose, P. & Verstovsek, S. Momelotinib: an emerging
treatment for myelofibrosis patients with anemia. J Hematol Oncol 15, 7
(2022). https://doi.org/10.1186/s13045-021-01157-4

 3  Palandri, F., Palumbo, G.A., Elli, E.M. et al. Ruxolitinib discontinuation
syndrome: incidence, risk factors, and management in 251 patients with
myelofibrosis. Blood Cancer J. 11, 4 (2021).
https://doi.org/10.1038/s41408-020-00392-1

 4  Pardanani, A., & Tefferi, A. (2011). Prognostic relevance of anemia
and transfusion dependency in myelodysplastic syndromes and primary
myelofibrosis. Haematologica, 96(1), 8-10.
https://doi.org/10.3324/haematol.2010.035519

 

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