On January 25, 2022 Sierra Oncology, Inc. (NASDAQ: SRRA), a late-stage biopharmaceutical company dedicated to delivering targeted therapies for rare cancers, reported it has entered into a term loan agreement with Oxford Finance, LLC that is designed to primarily support the commercial preparation and potential launch of momelotinib, an investigational agent for the treatment of myelofibrosis, a rare form of blood cancer (Press release, Sierra Oncology, JAN 25, 2022, View Source [SID1234606782]). The Company estimates it had cash and cash equivalents of $104.7 million as of December 31, 2021.
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Stephen Dilly, MBBS, PhD, President and Chief Executive Officer of Sierra Oncology, said, "Our strong cash position together with the term loan facility with Oxford create great financial optionality for us as we move towards an NDA filing and potential approval of momelotinib."
Under the terms of the loan agreement with Oxford Finance, LLC, Sierra drew an initial $5 million term loan at closing. The company has the ability to access up to an additional $120 million in a series of tranches, $70 million of which are based on certain pre-determined milestones, including US regulatory approval and financing, and $50 million is at the lender’s discretion. In addition, the Company’s Series B Warrants expire 75 days from today, and if fully exercised, would provide a total of $33.3 million in proceeds to the company.
About Momelotinib
Momelotinib is a potent, selective and orally bioavailable JAK1, JAK2 and ACVR1 / ALK2 inhibitor currently under investigation for the treatment of myelofibrosis. Myelofibrosis results from dysregulated JAK-STAT signaling and is characterized by constitutional symptoms, splenomegaly (enlarged spleen) and progressive anemia.
Sierra Oncology announced topline results of the Pivotal Phase 3 MOMENTUM clinical trial, a global, randomized, double-blind study evaluating momelotinib for the treatment of symptomatic and anemic myelofibrosis patients, on January 25, 2022. The company plans to submit a New Drug Application with the US Food & Drug Administration (FDA) in the second quarter of 2022. The FDA has granted Fast Track designation for momelotinib.