Sierra Oncology Acquires Late-Stage JAK Inhibitor Momelotinib from Gilead for $3M Upfront

On August 22, a biopharmaceutical company focused on the development of targeted therapies for blood and cancer diseasesSierra Oncologystated that it willPay a down payment of $3 million,FromGileadThe Company Obtains Candidate Drugmoelotinibdevelopment rights. Moelotinib in twoCompleted MyelofibrosisTreatmentDemonstrated differentiated therapeutic benefits (including benefits related to anemia control) and achieved substantial control of spleen and constitutional symptoms in Phase 3 clinical trials. On this news, Sierra Oncology’s stockUp 3.2%

Specific Transaction Terms: Sierra Oncology will pay Gilead Sciences an upfront payment of $3 million, and if certain conditions under the agreement are met, Sierra will pay up to$195 millionpotential milestone payments, which are primarily related to the commercial sales of the drug. Based on future commercial sales performance, Sierra will also pay Gilead sales royalties, ranging from the high teens to the low twenties. Sierra will bear all clinical study costs for the current and transition periods.

Momelotinibis a potent, selective, oralJAK1, JAK2, and ACVR1 Inhibitors, it offers distinct therapeutic benefits in the treatment of myelofibrosis, including a range of clinically meaningful improvements in anemia, such as eliminating or reducing the need for frequent transfusions, as well as achieving substantial control of splenomegaly and constitutional symptoms. Since the initiation of clinical studies in 2009, more than 1,200 subjects have received treatment. The U.S. patent for this drug is expected to provide protection until 2035, with European protection lasting until 2033.

Molecular structure of moelotinib (from Wikipedia)

The drug was originally discovered and developed by Cytopia, an Australian company. In 2011, YM BioSciences acquired Cytopia. Dr. Nick Glover, the current CEO of Sierra Oncology, previously led YM BioSciences and guided momelotinib through Phase 1/2 clinical trials. Later, in 2013, YM BioSciences was acquired by Gilead Sciences, Inc. Sierra Oncology’s current team includes members with experience in the development of momelotinib.

Srdan Verstovsek, Professor in the Department of Leukemia and expert in oncology at The University of Texas MD Anderson Cancer Center, stated: “Most patients with myelofibrosis, upon diagnosis or after receiving other treatments, including Novartis’ ruxolitinib (ruxolitinib) have already developed or will develop anemia.Anemiais the most important negative prognostic indicator in patients with myelofibrosis and represents one of the most significant disease outcomes. MyelofibrosisTraditionalThe focus of treatment is on splenomegaly and the constitutional symptoms commonly associated with this disease. However,Optimal PharmacotherapyIt should be able to resolve disease-related cytopenias (including anemia and transfusion dependence), while also improving symptoms of splenomegaly. Phase 3 clinical data for momelotinib demonstrate clinical benefits across all these categories; given its anti-anemia advantage, momelotinib has the potential to become an important therapeutic option for myelofibrosis.”

Gloverstated: “To date, clinical data have guided and supported our development strategy for momelotinib. Further clinical studies are needed in the future to consolidate these clinical data, and the company will further determine the expedited regulatory pathway for this drug.”

Of course, this news also covers up some issues. In fact, Gilead invested in 2012$500 millionDeveloping this drug in the hope that it may become Incyte and NovartisFirstJAK2 Inhibitor Jakaficompetitors. However, the trials conducted two years ago were unsuccessful, due to safety concerns and an inability to compete with Jakafi in clinical settings; therefore, Gilead has temporarily shelved the drug.

The $3 million upfront payment may suggest that Sierra acquired the drug at a low price; however, if approved, the majority of sales revenue will be weighted based on its performance under the terms.

While this news represents only a minor stir for Gilead Sciences, it has a significant impact on Sierra Oncology; as of this morning, the company’s market capitalization stood at just $135 million.Sierra hopes for better luck than Gilead,Gloverstated, “The opportunity to add this Phase 3 clinical asset to our existing pipeline of next-generation oncology drug candidates, SRA737 and SRA141, will help us become a diversified late-stage drug development company.”(Sina Medicine compiled by David)

Article reference source:

1、Sierra Oncology Acquires Momelotinib, an Investigational Janus Kinase (JAK) 1/2 and Activin Receptor Type 1 (ACVR1) Inhibitor for Myelofibrosis, from Gilead Sciences

2、With just $3M upfront, Sierra buys an unwanted Gilead late-stage cancer drug