Sierra Oncology Inc., a biopharmaceutical company focused on developing drugs for cancer, gained approval from the FDA for the drug after a late-stage study. It’s focused on treating patients with rare blood cancer. The company plans to use the proceeds to prepare for the commercialization of its drug known as momelotinib. In 2013, Gilead purchased the rights for the drug candidate momelotinib from YM BioSciences. The company then expanded its pipeline by acquiring other cancer drugs.
The money will be used to support Sierra Oncology’s research and development activities. The company secured a loan facility with Oxford Finance LLC worth up to $125 million. It also issued warrants to acquire another $23 million. The company also sold off certain assets following a clinical trial that showed the potential of its drug candidate momelotinib for treating rare blood cancer. After the company’s Phase III study for the treatment of patients with advanced melanoma, its stock price shot up 66%. However, it then retreated slightly in after-hours trading.