Sierra Oncology, Inc. (SRRA), a late-stage drug development company, closed Tuesday’s regular trading session at $39.52 after gaining an increase of 3.10% during the day. In the premarket, SRRA has surged by 36.26% and as a result, was trading at $53.85 at the time of the writing.
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GSK to Acquire SRRA
The exuberant performance from SRRA followed the agreement of acquisition between GSK and SRRA. Hours ago, GlaxoSmithKline plc and Sierra Oncology, Inc announced to have entered into the agreement. Under the agreement, GlaxoSmith would acquire Sierra for a price of $55 per share of common stock in the cash which represents an equity value of $1.9 billion approximately.
Healthcare Sector Suffering
In the wake of current turmoil on geopolitical and economic fronts, the healthcare sector is also facing ramifications. Since the last couple of days, healthcare stocks were depicting dismal performance. Consumer prices have taken a hit as a result of constantly rising inflationary pressure, which in turn has had an indirect impact on the more stable sectors, like healthcare.
Institutional Investment in SRRA
On the investment front, several large investors have been buying the shares of SRRA recently. Elmwood Wealth Management Inc. has bought a stake, which is valued at about $25,000. JPMorgan Chase & Co. saw an increase of more than 1,200.0% in its stake in Sierra, and as a result, it now holds 1300 shares of the company which are accumulatively valued at $28,000. Another asset management platform, Acadian LLC, bought a stake valued at about $79,000 in Sierra. Several other investors have also set their eyes on investing in SRRA.
Final Remarks
Looking ahead, the horizon appears to be clear for SRRA in near future. The stock had an excellent 12 months period, and the recent developments suggest that the same would be the case so in the future.
