Sorrento Therapeutics Turns Down Unsolicited Offer

Shares of Sorrento Therapeutics were pulling back after almost doubling this week on reports that the company had turned down an unsolicited and non-binding offer on Monday.

The offer was made from two biopharma companies who want to acquire all outstanding stock at $3-$5 per share in cash.

The offer rejected by Sorrento represented a roughly 88% to 331% premium to the $1.16 at which the shares closed this past Friday.

At the higher-end of the offer, Sorrento would have been valued at $709.4 million, while its current market capitalization stands at nearly $227 million.

Sorrento announced that the offer was made on November 23rd and signficantly undervalued the company and was not in its best interest, leading the board to reject the proposal.

The company has one therapy, ZTlido, approved in the United States for relieving nerve pain following shingles infection.

It also currently has one Phase 1 CD38 CART-T asset being developed for multiple myeloma and three other immuno-oncology assets that are in pre-clinical development.

Disclaimer: We have no position in Sorrento Therapeutics Inc. (NASDAQ: SRNE) and have not been compensated for this article.