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Sorrento receives non-binding acquisition proposal
Posted on Friday, 10 January 2020 14:28
US-based Sorrento Therapeutics announced it has received a non-binding proposal from a private equity fund to acquire all, or the majority, of the issued and outstanding share capital in the biopharmaceutical group. The unnamed buyout group is offering USD 7.00 per share, according to the statement published today, representing a valuation of USD 1.15 billion, based on the 164.53 million stocks outstanding. At this price, the deal represents a premium of 105.3 per cent to Sorrento’s close of USD 3.41 yesterday, which gave the business a market capitalisation of USD 561.05 million. The company’s board is carefully reviewing the proposal with the assistance of its advisors to determine the best course of action for the shareholders and the group. Sorrento is a clinical-stage antibody-centric biopharmaceutical group, developing new therapies to turn malignant cancers to manageable and possibly curable diseases. The firm’s multimodal multipronged approach to fighting cancer is made possible by its immune-oncology platforms. In the nine months to 30th September 2019, Sorrento posted revenues of USD 18.40 million, a 29.1 per cent increase from USD 14.25 million in the corresponding period of 2018. Net loss widened to USD 293.25 million in the same timeframe, compared to USD 153.76 million in Q1-3 2018. The company cautioned there is no guarantee of a deal being reached and Sorrento stockholders are not required to take any action at this time. Shares in the business are up 52.5 per cent to USD 5.20 at 13:24 today. According to Zephyr, the M&A database published by Bureau van Dijk, there were 599 deals targeting US-based pharmaceutical preparation manufacturers announced in 2019. In the largest of these, Bristol-Myers Squibb picked up Celgene for USD 74.00 billion. Cambrex, Brammer Bio MA, IFM Tre and Paragon Bioservices, among others, were also targeted last year. © Zephus Ltd