The company ‘GlaxoSmithKline Plc’ has agreed for purchasing the biotech company known as Sierra Oncology for $1.9 billion as the drugmaker of the United Kingdom for the purpose of strengthening its lineup of the medicines for fighting the cancer disease and also preparing to spin off the consumer health unit of the company.
The company is going to pay 55 dollars per share in cash for Sierra Oncology based in California, US, which is a producer of targeted therapies for the rare forms of cancer and it has been 39 percent than closing price of Sierra of 39.52 dollars.
Emma Walmsley, chief executive officer of GSK said, this move has been a part of the efforts for bolstering the pharmaceutical business as the company is preparing to split with Haleon, which is the producer of Panadol painkillers and the Sensodyne toothpaste in the month of July 2022. The company, which is already facing the pressure from the activist investor known as Elliott Investment Management has said that, the separation is going to be strengthening the prospects of both the companies.
As the GSK has been focusing on the lucrative drugs for HIV, cancer and several other diseases along with the vaccines and the company is facing the questions regarding the pipeline and as the deal is encouraging, the company also needs further steps for building up the company’s stage of the novel drugs in the advanced stages of the development of the drugs and the medicines.