Sorrento Therapeutics, Inc. (NASDAQ:SRNE) saw its stock head skyward on disclosing Monday that it has received and rejected unsolicited all-cash proposal from two biopharma companies.
The San Diego-based reported in a Monday news release that it received an unsolicited, non-binding term sheet proposal submitted by two biopharmaceutical companies, to acquire all of the issued and outstanding shares of the Company for between $3.00 and $5.00 per share in cash.
After reviewing the proposal in consultation with its advisors, Sorrento’s Board of Directors determined that the offer significantly undervalued Sorrento and was not in the best interest of the Company’s stockholders. Accordingly, the Board unanimously rejected the proposal.
The Company is in active late-stage licensing and collaboration discussions with leading biopharmaceutical companies for the Company’s immuno-oncology products, including multiple targets to be deployed within the KOKI DAR-T platform.
The Company believes that these pending transactions alone represent potential short- and long-term value creation significantly exceeding the current all cash proposal.
Said CEO Henry Ji, “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.”
There is no guarantee or certainty that the unsolicited proposal to acquire Sorrento will lead to a recommended firm offer to all stockholders of the Company, or that the Company will complete any pending licensing or collaboration transaction for Sorrento’s immunotherapy platforms.
Shares in SRNE gained 63 cents, or 39.4%, to $2.23.