Sierra Oncology Acquisition, Valuation, Funding & Investors

Sierra Oncology was acquired by GSK for $1.9B in April 2022.

Sierra Oncology acquisition price

$1.9B

Acquired by GSK · Apr 2022

Cumulative funding Sierra Oncology raised

$72M

across 2 funding rounds

Key investors in Sierra Oncology

  • Capital Midwest Fund
  • OrbiMed
  • RA Capital Management
  • Vivo Capital
  • Frazier Healthcare Partners
  • Janus Capital Group
  • Hopen Life Science Ventures
  • The Amherst Fund

Sierra Oncology Overview

About Sierra Oncology

Sierra Oncology is a biopharmaceutical company developing targeted therapies for rare cancers. The firm advances compounds like sisseimutamab avipalcabot targeting specific tumor drivers, conducting clinical trials in hematologic malignancies and solid tumors to address unmet needs in oncology treatment.


Founded

2004

HQ

United StatesSan Francisco, CA

Status

Acquired

Customer focus

B2B

Revenue model

Licensing

Valuation

$1.9B (acquired Apr 2022)

Sierra Oncology Acquisition

Sierra Oncology was acquired by GSK for $1.9B on 13 April 2022.

Before the acquisition Sierra Oncology had raised $72M across 2 funding rounds.

GlaxoSmithKline (GSK) agreed to acquire Sierra Oncology, a late-stage biopharmaceutical company focused on targeted therapies for rare cancers, for $55 per share in cash, representing an approximate equity value of $1.9 billion. The deal, announced on April 13, 2022, and completed on July 1, 2022, provides GSK access to momelotinib, Sierra's lead asset for myelofibrosis that met primary and key secondary endpoints in the phase III MOMENTUM trial, demonstrating benefits in symptoms, splenic response, and anemia. Sierra had submitted a New Drug Application to the FDA in June 2022, with a European submission planned for the second half of 2022. The acquisition supports GSK's strategy to build its oncology portfolio with differentiated specialty medicines, anticipating momelotinib's U.S. launch in 2023 and EPS accretion in 2024. Momelotinib's development history includes prior ownership by YM BioSciences (acquired by Gilead for $510 million in 2012) and transfer to Sierra in 2018 for $3 million upfront plus royalties after trial setbacks. The per-share price offered a 39% premium to Sierra's closing price on April 12, 2022, and 63% to its 30-day VWAP, with shareholder approval secured on June 29, 2022, following HSR antitrust clearance. The transaction occurred amid a biotech market downturn with slowed IPOs and stock declines, positioning it as one of the largest public biotech deals of early 2022, matching UCB's Zogenix acquisition. GSK views momelotinib as addressing unmet needs in myelofibrosis patients with anemia unresponsive to treatments like Jakafi.

Sierra Oncology acquisition details
AcquirerDateTypePrice
13 Apr 2022Strategic M&A$1.9B

Sierra Oncology Funding History

Sierra Oncology has raised a total of $72M across 2 funding rounds.

Sierra Oncology's first fundraising round was a $12M Series C in January 2014. The most recent completed round was a $60M Series D in April 2014.

Sierra Oncology funding rounds

Sierra Oncology funding rounds
DateStageInvestorsRaisedDeal Summary
Apr 2014Series DVivo Capital (lead); Apjohn ventures; Frazier Healthcare Partners; Capital Midwest Fund; RA Capital Management; The Amherst Fund; Hopen Life Science Ventures; OrbiMed; Janus Capital Group$60M-
Jan 2014Series CCapital Midwest Fund (lead)$12MSierra Oncology completed a Series C financing round in January 2014, securing $12 million in capital to expand Phase II cancer studies for PNT2258, a novel BCL2 inhibitor targeting defined lymphoma patients. The round was led by Capital Midwest Fund. Post-money valuation, revenue metrics, and EBITDA figures for this round are not publicly available in disclosed sources.

Who has invested in Sierra Oncology?

9 investors have backed Sierra Oncology across its funding rounds, including Capital Midwest Fund, OrbiMed, RA Capital Management, Vivo Capital, Frazier Healthcare Partners and Janus Capital Group.

Lead investors include Vivo Capital and Capital Midwest Fund.


Sierra Oncology Investors

Investors in Sierra Oncology by funding rounds participated
InvestorHQRoundsRoleFirst check
Capital Midwest FundUnited StatesMilwaukee, WI2LeadJan 2014
Apjohn venturesUnited StatesKalamazoo, MI1ParticipantApr 2014
Frazier Healthcare PartnersUnited StatesSeattle, WA1ParticipantApr 2014
Vivo CapitalUnited StatesUnited States1LeadApr 2014
RA Capital ManagementUnited StatesBoston, MA1ParticipantApr 2014
The Amherst FundUnited StatesUnited States1ParticipantApr 2014
Hopen Life Science VenturesUnited StatesGrand Rapids, MI1ParticipantApr 2014

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Sierra Oncology Competitors

Sierra Oncology competitors include listed companies like Recursion Pharmaceuticals, Mesoblast, Alvotech and Eris Lifesciences, and private ones like ArsenalBio and BioRay Pharmaceuticals.

Public and private companies comparable to Sierra Oncology
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
ArsenalBioUnited StatesUnited StatesPrivate--$1.9B-
BioRay PharmaceuticalsChinaShanghaiPrivate$131M-$1.9B14.5x
Recursion PharmaceuticalsUnited StatesUnited StatesPublicly listed$74M($582M)$1.9B26.6x
MesoblastAustraliaAustraliaPublicly listed$120M($35M)$1.9B14.7x
AlvotechUnited StatesUnited StatesPublicly listed$586M$308M$1.9B5.4x
Eris LifesciencesIndiaIndiaPublicly listed$325M$115M$1.9B6.2x

Sierra Oncology Public Comps

Sierra Oncology is no longer listed, but its public comps include Recursion Pharmaceuticals, Mesoblast, Alvotech, Eris Lifesciences, OneSource Specialty, Voronoi, Pfizer India, Jinyu Bio-Technology Co., Lakefront Biotherapeutics and Hepalink.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Recursion Pharmaceuticals$74M($582M)19.1x26.6x(2.4x)(2.8x)
Mesoblast$120M($35M)16.5x14.7x(57.1x)(73.4x)
Alvotech$586M$308M5.5x5.4x10.4x18.6x
Eris Lifesciences$325M$115M6.6x6.2x18.5x17.4x
OneSource Specialty$148M$30M13.8x10.8x68.3x36.9x
Voronoi$5M($35M)337.1x358.5x(52.6x)(32.5x)
Pfizer India$263M$90M6.1x5.9x17.7x16.2x
Jinyu Bio-Technology Co.$208M$47M8.2x7.2x36.4x29.2x

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Common questions about Sierra Oncology

When was Sierra Oncology founded?Sierra Oncology was founded in 2004.
Where is Sierra Oncology headquartered?Sierra Oncology is headquartered in San Francisco, CA, United States.
Is Sierra Oncology publicly listed?No, Sierra Oncology was acquired by GSK in April 2022.
Who acquired Sierra Oncology?Sierra Oncology was acquired by GSK in April 2022.
How much was Sierra Oncology acquired for?Sierra Oncology was acquired for $1.9B in April 2022.
How much funding has Sierra Oncology raised?Sierra Oncology has raised $72M across 2 funding rounds.
What was Sierra Oncology's last funding round?Sierra Oncology's last funding round was a $60M Series D in April 2014, led by Vivo Capital.
Who are Sierra Oncology's investors?Sierra Oncology's investors include Capital Midwest Fund, Apjohn ventures, Frazier Healthcare Partners, Vivo Capital, RA Capital Management, The Amherst Fund, Hopen Life Science Ventures, OrbiMed and Janus Capital Group.
Which companies are comparable to Sierra Oncology?Companies comparable to Sierra Oncology include ArsenalBio, BioRay Pharmaceuticals, Recursion Pharmaceuticals, Mesoblast, Alvotech and Eris Lifesciences.

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