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Sorrento Therapeutics Rejects Unsolicited Acquisition Proposal
Nov. 25, 2019 09:56AM PST
Biotech InvestingSorrento Therapeutics has announced it received — and rejected — an unsolicited all cash acquisition proposal from two companies.
Sorrento Therapeutics (NASDAQ:SRNE) has announced that on November 23 it received an unsolicited non-binding proposal from two biopharmaceutical companies to acquire all of the issued and outstanding shares of Sorrento for between US$3.00 and US$5.00 per share.
As quoted in the press release:
After reviewing the proposal in consultation with its advisors, Sorrento’s Board of Directors (the “Board”) determined that the offer significantly undervalued Sorrento and was not in the best interest of the Company’s stockholders. Accordingly, the Board unanimously rejected the proposal
The Company is in active late-stage licensing and collaboration discussions with leading biopharmaceutical companies for the Company’s immuno-oncology products, including multiple targets to be deployed within the KOKI DAR-T platform. The Company believes that these pending transactions alone represent potential short- and long-term value creation significantly exceeding the current all cash proposal.
Dr. Henry Ji, Chairman and Chief Executive Officer, said, “the Sorrento Board of Directors and management team are committed to serving the best interests of the Company and Sorrento stockholders, and are confident in the Company’s strategic direction and our ability to implement it.”
There is no guarantee or certainty that the unsolicited proposal to acquire Sorrento will lead to a recommended firm offer to all stockholders of the Company, or that the Company will complete any pending licensing or collaboration transaction for Sorrento’s immunotherapy platforms.