By Ian Walker 
 

Pharmaceutical giant GlaxoSmithKline PLC said Wednesday that it is buying biopharmaceutical company Sierra Oncology Inc. for $1.9 billion, and backed its guidance.

GlaxoSmithKline will pay $55 per share in cash, a 39% premium to its closing price of $39.52 on Tuesday. The deal has the support of Sierra's board as well as shareholders owning 28% of its stock.

Glaxo reaffirmed its guidance. It expects 2021-2026 sales growth of more than 5% and for 10% adjusted operating profit.

The deal is expected to close in the third quarter of this year.

 

Write to Ian Walker at ian.walker@wsj.com

 

(END) Dow Jones Newswires

April 13, 2022 02:42 ET (06:42 GMT)

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