Sorrento Therapeutics Inc. (NASDAQ:SRNE)
Sorrento Therapeutics Inc. (NASDAQ:SRNE)’s new, state of the art, 25,000 sq. ft. Good Manufacturing plant in the city of Suzhou is up and running. The facility is now expected to support the company’ growing antibody drug conjugate pipeline that currently boasts over a dozen pre-clinical cancer-focused Anti-body drug conjugates (ADC’s).
New Plant Impact
Sorrento Therapeutics Inc. (NASDAQ:SRNE) has partnered with a number of biopharmaceutical companies as it continues to work on its cancer treatments that include the likes of HER2. The company is planning to file an Investigational New Drug (IND) Application with Chinese regulators later in the year.
The biopharmaceutical company is also eyeing service revenue and royalty streams with its ADC programs having already progressed two proprietary cancer treatments into IND-enabling studies.
“Our new plant has been designed to provide full analytical support capabilities, GMP production of toxin-linkers based on our proprietary technology and methods, as well as GMP-grade bio conjugation of the antibody to produce ADCs. The launch of this state of the art plant, in addition to our existing ADC research sites in Nanjing, China, and San Diego, demonstrates Sorrento’s commitment to our ADC pharmaceutical partners […],” said CEO, Henry Ji.
The opening of the new state of the art facility comes on the heels of Sorrento Therapeutics completing the acquisition of Virttu Biologics through its cellular therapy focused subsidiary TNK Therapeutics. The two companies had initially entered into a binding term sheet agreement consequently setting out terms for a merger.
Under the terms of the agreement, TNK acquired all Virttu issued and outstanding equity. Virttu equity holders received an aggregate of 797,081 shares of Sorrento Therapeutics based on a $5.55 price per share. The equity holders are also eligible to receive an additional $20 million in TNK stock should the company close on third-party financing.
Based in Glasgow, Virttu is a privately owned company that specializes in the development of oncolytic virus therapy for the treatment of cancer. The company’s lead product is Seprehvir, derived from a modified version of human herpes simplex virus
The acquisition of Virttu, according to Sorrento Therapeutics Inc. (NASDAQ:SRNE)’s CEO, is part of a plan that seeks to bolster the company’s clinical stage asset. The company is also planning to make good use of Seprehvir which has the potential to be used in various cancer indications.
Sorrento Therapeutics Inc. (NASDAQ:SRNE) stock was down by 8.7% in Tuesday trading session ending the day at lows of $1.58 a share.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.