ProNAi Therapeutics Inc (SRRA)

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Sierra Oncology Gets Loan to Support Myelofibrosis Drug Potential Rollout Following Positive Results
7:34 am ET January 25, 2022 (Dow Jones) Print

By Kimberly Chin


Sierra Oncology Inc. said it has secured a term loan with Oxford Finance LLC that will mostly support the commercial preparation and potential rollout of momelotinib, an investigational drug that treats myelofibrosis, following positive results from an advanced trial.

The biopharmaceutical company on Tuesday said that a Phase 3 trial for momelotinib in patients with the rare form of blood cancer met all of its primary and secondary key endpoints. The company saw a statistically significant benefit in the reduction of symptoms, blood transfusions due to anemia and splenic size.

The patients were symptomatic, anemic and had previously been treated with an approved JAK inhibitor, the company said.

Sierra plans to submit a new drug application with the U.S. Food and Drug Administration in the second quarter.

The company has drawn an initial $5 million term loan at the closing of its financing agreement with Oxford. It will be able to access up to an additional $120 million in several tranches, $70 million of which will be determined by reaching certain milestones, such as regulatory approval in the U.S. About $50 million will be at the lender's discretion, it said.

The company could receive proceeds of $33.3 million if it exercises all of its Series B warrants, which expire in 75 days, Sierra said.