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Highlights
- Sierra reported US$104.7 million in cash and cash equivalents as of December 31, 2021.
- Sierra Oncology, Inc. announced positive data from its clinical trial of momelotinib.
- Under a deal, Oxford Finance, LLC will extend a loan of US$5 million to Sierra to help support its potential commercial launch of momelotinib.
Shares of biopharmaceutical company Sierra Oncology, Inc. (NASDAQ:SRRA) rose over 59% on Tuesday after it announced entering a loan agreement with Oxford Finance, LLC.
Under the deal, Oxford Finance, LLC will extend a loan of US$5 million to Sierra to help support its potential commercial launch of momelotinib, a drug used for treating patients suffering from a rare type of blood cancer called myelofibrosis.
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As of December 31, 2021, Sierra had cash and cash equivalents of US$104.7 million. Sierra’s President and CEO Stephen Dilly said the "strong cash position" along with the term loan facility would provide significant financial stability to the company. Dilly added that it would also help the company in "NDA filing and potential approval of momelotinib".
Sierra will also have access to an additional US$120 million in tranches, of which US$70 million will be based on predetermined milestones like regulatory approval and financing.
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Sierra Oncology, Inc. (NASDAQ:SRRA): Stock performance, financials
The SRRA shares traded at US$24.72 at 9:48 am ET on January 25, up 59.38% from their previous close. In the past 12 months, the stock value marginally declined by 1.96%. Sierra has a market cap of US$233.50 million, and its forward one-year P/E ratio is -2.19. Its EPS is US$-7.11.
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The stock saw the highest price of US$24.00 and the lowest price of US$13.68 in the last 52 weeks. Its trading volume on January 25 was 226,832.
In the third quarter of fiscal 2021, its total operating expenses were US$28.60 million, compared to US$14.54 million in the year-ago quarter. It reported a net loss of US$28.64 million against a loss of US$14.50 million in the comparable quarter of the previous year.
As of September 30, 2021, the company had cash and cash equivalents of US$97.06 million.
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Bottomline
Sierra announced positive topline data from its pivotal Phase 3 Momentum study, which evaluated the efficacy of momelotinib in patients with myelofibrosis. The company said that study met all the primary and secondary endpoints.
