Sierra Oncology Inc (NASDAQ: SRRA) rose after the company disclosed that it has acquired the drug candidate momelotinib from Gilead Sciences.
Momelotinib has been investigated in two completed Phase 3 trials for the treatment of myelofibrosis and has demonstrated a potentially differentiated therapeutic profile encompassing anemia-related benefits, as well as achieving substantive spleen and constitutional symptom control.
Said one top medical official, "The majority of myelofibrosis patients have anemia at diagnosis or develop it during treatment with other therapies, including ruxolitinib. Anemia is the most significant negative prognostic indicator in myelofibrosis patients and, as a result, one of the most important disease consequences to address."
Said Dr. Barbara Klencke, Chief Development Officer for Sierra Oncology. "Momelotinib also has a well-defined, predictable safety profile, with more than 180 patients still remaining on active long-term therapy, some benefitting from treatment for more than seven years, reinforcing its potential durable efficacy and favorable long-term tolerability."
Sierra will pay Gilead a $3-million upfront fee for momelotinib and potential aggregate milestone payments of up to $195 million, which are largely associated with commercial sales of the drug.
Sierra will also pay Gilead royalties on any sales of momelotinib, which will be tiered based on commercial success and range from mid-teens to high-20s. Sierra will assume all currently ongoing clinical studies with momelotinib following a transition period.
Sierra Oncology is a clinical stage drug development company advancing targeted therapeutics for the treatment of patients with unmet medical needs in hematology and oncology.
Shares began Wednesday’s session up two cents, or 1.1%, to $1.85
