Sierra Oncology, Inc. (NASDAQ: SRRA), a late-stage
biopharmaceutical company with a mission to deliver targeted
therapies that treat rare forms of cancer, today reported its
financial and operating results for the first quarter ended March
31, 2022.
“By entering into a merger agreement with GSK, we are one step
closer to realizing our mission of delivering transformative
therapies for patients with rare cancers, while also delivering
compelling and certain value for our stockholders. We are working
to continue to progress our timeline and our NDA submission remains
on track for later this quarter,” said Stephen Dilly, MBBS, PhD,
President and Chief Executive Officer at Sierra Oncology.
Key Business Highlights
- On April 13, 2022, Sierra announced it had entered into an
agreement to be acquired by GSK for $55 per share of common stock,
representing an approximate total equity value of $1.9 billion. The
per share price represents a premium of approximately 39 percent to
Sierra’s closing stock price on April 12, 2022, and approximately
63 percent to Sierra’s volume-weighted average price (VWAP) over
the prior thirty trading days. The transaction is expected to close
in the third quarter of 2022 or before.
- On January 25, 2022, Sierra announced momelotinib achieved a
statistically significant benefit on symptoms, anemia and splenic
size in the pivotal MOMENTUM Phase 3 study. The trial met all of
its primary and key secondary endpoints. Data from this study, as
well as previous data from the SIMPLIFY-1 and SIMPLIFY-2 Phase 3
studies, will serve as the foundation for the submission of a New
Drug Application to the US Food & Drug Administration in the
second quarter of 2022. If approved, the company anticipates
momelotinib being commercially available early in the first half of
2023.
- The Journal of Hematology and Oncology published a review
article on momelotinib, titled “Momelotinib: an emerging treatment
for myelofibrosis patients with anemia.” The article highlights the
use of momelotinib for the potential treatment of myelofibrosis
patients who are anemic based on published data from the SIMPLIFY
studies as well as earlier Phase 2 studies. The full article is
available for review here.
- Sierra ended the quarter with a cash balance of $274.0 million.
Included in this total is $145.3 million in net proceeds from a
public equity offering early in the first quarter of 2022. The
company also secured a debt facility with Oxford Finance, LLC for
up to $125.0 million, announced in January of this year. Under the
terms of the loan agreement, Sierra drew an initial $5.0 million
term loan at closing. Additionally, during the first quarter of
2022, the company received proceeds of $9.6 million from the
exercise of a warrant by Gilead, $4.6 million from the exercise of
stock options, and $30.5 million from the exercise of Series B
warrants. In April 2022, the company received an additional $2.8
million in proceeds from the exercise of the remaining Series B
warrants prior to their expiration on April 10, 2022.
First Quarter 2022 Financial Results (all amounts reported in
U.S. currency) Research and development expenses were $17.6
million for the three months ended March 31, 2022 compared with
$14.0 million for the three months ended March 31, 2021. The
increase primarily related to a $2.6 million increase in
personnel-related and allocated overhead costs, a $1.6 million
increase in third-party manufacturing costs of which $0.9 million
pertained to momelotinib, and a $0.2 million increase in other
research and support costs. These increases were partially offset
by a $0.8 million decrease in clinical trial and development costs
primarily for momelotinib. Research and development expenses
included non-cash stock-based compensation of $1.6 million and $1.7
million for the three months ended March 31, 2022 and 2021,
respectively.
General and administrative expenses were $10.3 million for the
three months ended March 31, 2022, compared to $5.9 million for the
three months ended March 31, 2021. The increase was due to a $3.2
million increase in personnel-related and allocated overhead costs,
of which $0.9 million related to severance and a stock-based
compensation charge pursuant to a transition agreement with a
former executive, and a $1.2 million increase in professional fees
primarily relating to pre-commercial costs for momelotinib. General
and administrative expenses included non-cash stock-based
compensation of $1.7 million and $1.3 million for the three months
ended March 31, 2022 and 2021, respectively.
For the three months ended March 31, 2022, Sierra incurred a net
loss of $27.9 million compared to a net loss of $19.9 million for
the three months ended March 31, 2021.
Cash and cash equivalents totaled $274.0 million as of March 31,
2022, compared to $104.7 million as of December 31, 2021.
As of March 31, 2022, there were 23,800,409 total shares of
common stock outstanding and warrants to purchase 7,984,428 shares
of common stock outstanding and pre-funded warrants to purchase
925,925 shares of common stock. There were Series B warrants with
an exercise price of $13.20 to purchase 212,477 shares of common
stock that were fully exercised after March 31, 2022, and prior to
expiration on April 10, 2022 and provided $2.8 million of proceeds
to the company. In addition, there were Series A warrants that
contain a cash and/or cashless exercise provision to purchase
7,771,951 shares of common stock, with an exercise price equal to
$13.20 per share. There were 5,466,822 shares issuable upon
exercise of stock options and an additional warrant to purchase
1,839 shares.
About Sierra Oncology Sierra Oncology is a late-stage
biopharmaceutical company on a mission to deliver targeted
therapies that treat rare forms of cancer. We harness our deep
scientific expertise to identify compounds that target the root
cause of disease in order to advance therapies on the leading edge
of cancer biology. Our team takes an evidence-based approach to
understand the limitations of current treatments and explore new
ways to change the cancer treatment paradigm. Together we are
transforming promise into patient impact.
For more information, please visit www.sierraoncology.com.
Cautionary Note on Forward-Looking Statements This press
release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, including, but not limited to, statements
regarding Sierra Oncology's expectations regarding the
commercialization and future success of momelotinib and future
expansion of its pipeline, the expected timing of the NDA
submission for momelotinib. the timing of regulatory approval of
momelotinib, the timing of momelotinib becoming commercially
available, statements by Sierra Oncology’s President and Chief
Executive Officer, statements regarding the company’s operational
and commercialization plans, statements regarding the company’s
financial condition including the sufficiency of its cash and cash
equivalents to fund its operating plans, the company’s ability to
identify compounds, and statements relating to the completion of
the merger.
All statements other than statements of historical fact are
statements that could be deemed forward-looking statements. These
statements are based on management's current expectations and
beliefs and are subject to a number of risks, uncertainties and
assumptions that could cause actual results to differ materially
from those described in the forward-looking statements. Such
forward-looking statements are subject to risks and uncertainties,
including, among others, the risk that Sierra Oncology may not be
able to successfully develop, obtain regulatory approval for and
commercialize momelotinib or other product candidates or experience
significant delays in doing so, Sierra Oncology may not be able to
demonstrate acceptable safety and efficacy of its product
candidates, the risk that disruptions and impacts of COVID-19 will
be significant and lengthy, Sierra Oncology may be unable to
acquire additional assets to build a pipeline of additional product
candidates, Sierra Oncology's third-party manufacturers may cause
its supply of materials to become limited or interrupted or fail to
be of satisfactory quantity or quality, Sierra Oncology's cash
resources may be insufficient to fund its current operating plans
and it may be unable to raise additional capital when needed,
Sierra Oncology may be unable to obtain and enforce intellectual
property protection for its technologies and momelotinib, risks
related to the merger and the other factors described under the
heading "Risk Factors" set forth in Sierra Oncology's filings with
the Securities and Exchange Commission from time to time. Sierra
Oncology undertakes no obligation to update the forward-looking
statements contained herein or to reflect events or circumstances
occurring after the date hereof, other than as may be required by
applicable law.
SIERRA ONCOLOGY, INC.
Condensed Consolidated Balance
Sheets
(unaudited)
(in thousands)
March 31, 2022
December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
274,015
$
104,749
Prepaid expenses and other current
assets
4,182
2,644
Total current assets
278,197
107,393
Property and equipment, net
129
141
Operating lease right-of-use assets
708
788
Other assets
966
1,045
TOTAL ASSETS
$
280,000
$
109,367
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accrued and other liabilities
$
11,282
$
10,726
Accounts payable
1,798
2,158
Total current liabilities
13,080
12,884
Term loan
4,862
—
Operating lease liabilities
436
485
TOTAL LIABILITIES
18,378
13,369
STOCKHOLDERS’ EQUITY:
Common stock
24
16
Additional paid-in capital
1,230,774
1,037,230
Accumulated deficit
(969,176
)
(941,248
)
TOTAL STOCKHOLDERS’ EQUITY
261,622
95,998
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
280,000
$
109,367
SIERRA ONCOLOGY, INC.
Condensed Consolidated
Statements of Operations
(unaudited)
(in thousands, except share
and per share data)
Three Months Ended March
31,
2022
2021
Operating expenses:
Research and development
$
17,554
$
13,953
General and administrative
10,329
5,865
Total operating expenses
27,883
19,818
Loss from operations
(27,883
)
(19,818
)
Other expense, net
59
29
Loss before provision for (benefit from)
income taxes, net
(27,942
)
(19,847
)
Provision for (benefit from) income taxes,
net
(14
)
68
Net loss
$
(27,928
)
$
(19,915
)
Net loss per common share, basic and
diluted
$
(1.33
)
$
(1.71
)
Weighted-average shares used in computing
net loss per common
share, basic and diluted
20,965,811
11,667,967
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220506005046/en/
Investors DeDe Sheel 415.732.9828
dsheel@sierraoncology.com
Media Lauren Musto 615.351.7777
lmusto@sierraoncology.com
Grafico Azioni Sierra Oncology (NASDAQ:SRRA)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Sierra Oncology (NASDAQ:SRRA)
Storico
Da Set 2023 a Set 2024