GSK - GlaxoSmithKline's Acquisition Of Sierra Oncology Improves Relations With Activist Elliott
- GlaxoSmithKline has agreed to buy out Sierra Oncology for $1.9bn - Sierra is attempting to bring Momelotinib to market after strong Phase 3 results in Myelofibrosis.
- Momelotinib could be a blockbuster, with peak sales expectations of $1.7bn.
- Activist Investor Elliott Management is agitating for change at GSK, and management is responding with good results, M&A, and the spin-out of its Consumer Health division.
- Elliott could be trying to force a sale or merger, after all, it was involved in Alexion's sale to AZN and Allergan's sale to AbbVie.
- That ought to be positive news for holders of GSK stock which has been stagnant for nearly 2 decades. I could see ~30% upside based on 5% annual growth and a revenue target of $33bn, or a buyout / merger.
For further details see:
GlaxoSmithKline's Acquisition Of Sierra Oncology Improves Relations With Activist Elliott