Sorrento Therapeutics Inc. (NASDAQ:SRNE)’s CEO off the Hook

Sorrento Therapeutics Inc. (NASDAQ:SRNE)

Sorrento Therapeutics Inc. (NASDAQ:SRNE) has confirmed the dismissal of claims lodged by Wildcat Capital Management. The investment firm whose clients own 6.5% of the company’s common stock was pushing for the dismissal of Chief Executive Officer, Henry Ji.

Wildcat Management Demands

In a letter sent to Sorrento Therapeutics Inc. (NASDAQ:SRNE) board, Wildcat Management cited destruction of shareholder value as the reason behind their demands. The firm accuses the current CEO of repeatedly transferring assets to newly created subsidiaries and then granting executives and non-employee directors stock options at nominal prices.

“The Wildcat Shareholders believe that the Company’s Chief Executive Officer (“CEO”), Dr. Henry Ji, has consistently acted in a manner that is not in the best interests of shareholders and has destroyed significant shareholder value. Further, the Wildcat Shareholders believe that the Company’s Board of Directors (the “Board”) has failed to act in the best interests of shareholders and that the Directors have breached their fiduciary duties,” Wildcat wrote in a letter to the board.

The firm had also raised concerns about a number of financing transactions that the executive had spearheaded, saying they had significantly diluted shareholders value. Wildcat Capital Management was also pushing for the appointment of its three nominees into the board to oversee the interest of its clients.

ZTildo Positive Results

Separately, Sorrento Therapeutics Inc. (NASDAQ:SRNE) subsidiary SCILEX Pharmaceutics has reported positive results in a head to head adhesion study of lead product ZTildo. The company says the product demonstrated superior adhesion compared to Varsities, a reference product approved in Europe. ZTildo is a non-opioid lidocaine patch being developed for the treatment of post-herpetic neuralgia, a neuropathic condition.

The positive study results, according to Sorrento Therapeutics Inc. (NASDAQ:SRNE), complement previous clinical and adhesion data results that should help support their case for new drug application.

“We are pleased to report our noteworthy data. We believe that the ability of ZTildo™ to outperform Varsities® in this head to head study will translate into better patient compliance and provide us with an important clinical advantage. I look forward to moving ZTildo™ closer to commercialization in the US and the EU,” said president SCILEX, Anthony Mack.

Chief executive officer believes the positive study results not only validate ZTildo but should go a long way in supporting product development efforts. The executive expects the head to head study to help bolster ZTildo prospects as they move to pursue sales opportunities in Europe and the U.S.

Sorrento Therapeutics Inc. (NASDAQ:SRNE) stock was up by 8.11% in Friday trading session to end the week at $2 a share. SRNE shares are unchanged in early Monday trading.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Sorrento Therapeutics Inc. (NASDAQ:SRNE) Opens New Manufacturing Plant after Virttu Acquisition

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.

Virttu Acquisition

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.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.