GSK Buys Sierra Oncology for $1.9 Billion in Cancer Push

  • Pharma giant to pay 39% premium for U.S. drugmaker Sierra
  • GSK’s CEO is seeking to strengthen pharmaceutical business
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GlaxoSmithKline Plc agreed to buy biotech company Sierra Oncology for $1.9 billion as the U.K. drugmaker moves to strengthen its lineup of medicines to fight cancer and prepares to spin off its consumer-health unit.

The pharmaceutical giant will pay $55 per share in cash for California-based Sierra, a maker of targeted therapies for rare forms of cancer, GSK said Wednesday. That’s 39% more than Sierra’s closing price Tuesday of $39.52.