In Glaxo Sierra’s momelotinib finds its fifth owner

Investors bemoaning the state of the public biotech markets today have reason for optimism. Glaxosmithkline’s $1.9bn takeover of Sierra Oncology shows that if a target with positive pivotal data meets a company with a pipeline problem a deal will happen. Thus, as Evaluate Vantage had suggested at the time, as soon as Sierra’s momelotinib scored in the phase 3 Momentum study a takeover was possible. The data were impressive, but anyone today suggesting that Glaxo is overpaying ($1.9bn represents a 39% premium) will point to two facts: momelotinib targets a niche indication, myelofibrosis patients in whom anaemia is the main co-morbidity, and it has limited IP protection. SEC filings cite composition patents as expiring in 2028-30, though a salt form is apparently covered until 2035. Momelotinib has a long history, and Glaxo is its fifth owner, after Cytopia, YM Biosciences, Gilead and Sierra. One person who will today be celebrating is Nick Glover, Sierra’s former chief exec; Mr Glover had sold YM to Gilead before reacquiring momelotinib, and while he no longer runs Sierra the appreciation in any stock he still holds in his former company will confirm him as having lived the biotech dream.