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.