Sorrento Therapeutics surges as it rejects unsolicited all-cash offer
By Michele Maatouk
Date: Monday 25 Nov 2019
(Sharecast News) - Shares of Sorrento Therapeutics surged on Monday after the company said it had rejected an unsolicited buyout offer from two biopharmaceutical companies.
The company said the offer, received on Saturday, to buy out the company for between $3.00 and $5.00 per share in cash, "significantly undervalued" Sorrento and was not in the best interests of its shareholders.
"Accordingly, the board unanimously rejected the proposal," it said.
Sorrento said it is in active late-stage licensing and collaboration discussions with "leading" biopharmaceutical companies for its immuno-oncology products. It said that these pending transactions alone "represent potential short- and long-term value creation significantly exceeding the current all cash proposal".
Chairman and chief executive officer Dr. Henry Ji 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."
The group said there is no guarantee that the unsolicited buyout proposal will lead to a recommended firm offer or that it will complete any pending licensing or collaboration transaction for its immunotherapy platforms.
At 1250 GMT, the shares were up 28% at $2.04 in pre-market trade.
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