Sierra Oncology, Inc. (NASDAQ: SRRA) operates as a late-stage biopharmaceutical company, which is focused on the discovery, testing and development of novel therapies that treat rare forms of cancer. Shares of the oncology company are jumping 43% through early trading on Tuesday, January 25, 2022. Over the past three months, Sierra Oncology has seen average daily volume of 63,100 shares. However, volume of 18.42 million shares or dollar volume of around $412.79 million, has already exchanged hands through early trading Tuesday.
Shares of Sierra Oncology are surging after the company announced positive topline data from the pivotal Phase 3 MOMENTUM study for momelotinib (MMB) as a treatment for patients with myelofibrosis who are symptomatic and anemic. The trial showed that momelotinib met all of its primary and key secondary endpoints.
“These data are extremely exciting and everything we had hoped to see from the trial,” said Stephen Dilly, MBBS, PhD, President and Chief Executive Officer of Sierra Oncology. “To achieve statistically significant and clinically important efficacy across all prespecified primary and key secondary endpoints while maintaining platelet counts in such a difficult to treat patient population is remarkable, and a confirmation of the anemia response we identified in the comprehensive review of our previous Phase 3 studies.”
As a result of the strong clinical data, Sierra Oncology is planning to submit a New Drug Application during the second quarter of 2022. Furthermore, the company is readying commercialization plans for momelotinib.
In conjunction with its clinical trial results, Sierra Oncology also announced it has entered into a term loan agreement with Oxford Finance, LLC, which will help the company support preparation for commercialization, as well as the potential launch of momeltinib. The Oxford Finance term loan will give Sierra Oncology access to up to $125 million.
Under the terms of the agreement, Sierra Oncology has drawn an initial $5 million term loan and can access another $120 million through tranches. Of the remaining $120 million accessible capital, $70 million will be available only once pre-determined milestones are reached and the other $50 million is deployable at the discretion of Oxford Finance, LLC.
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