Tangled in bankruptcy proceedings and legal tussle, Sorrento secures $75M to stay afloat

22 Feb 2023
endpts.com
ImmunotherapyPatent InfringementClinical Trial Failure
Sorrento Therapeutics can keep the lights on for now. Days after filing its Chapter 11 paperwork, the San Diego-based biotech said a bankruptcy court in Texas has granted interim approval for a $75 million financing that will fund its operations while it sorts out its financial troubles. Chief among those is having its former partners at NantCell, founded by biotech billionaire Patrick Soon-Shiong, breathe down its neck. As a years-long legal battle over a joint venture culminated in an arbitrator awarding NantCell close to $157 million in contractual damages — a collection of which its parent company, ImmunityBio, vowed to “pursue vigorously” — Sorrento said it “sought chapter 11 relief to safeguard its business and ensure the continuation of business operations, while protecting and maximizing value for stakeholders.” Although Sorrento disagreed with the ruling, it also noted that under the order, interests would stack up quickly at 10% per year. NantCell and Sorrento had created a joint venture called NANTibody in 2015 to develop new immunotherapies. But Sorrento also inked a deal around the same time, for $90 million upfront, to sell its formulation of paclitaxel, dubbed Cynviloq, to another Soon-Shiong company called NantPharma. And it’s accusing NantPharma for concocting a “catch-and-kill” scheme around that drug to protect Soon-Shiong’s interests in Abraxane, a paclitaxel already on the market. Arbitration around that case against NantPharma is still pending, Sorrento previously noted. As of the Chapter 11 filing, Sorrento counted around $1 billion in assets. JMB Capital Partners provided the latest financing.
For more details,please visit the original website
The content of the article does not represent any opinions of Synapse and its affiliated companies. If there is any copyright infringement or error, please contact us, and we will deal with it within 24 hours.
Organizations
Indications
-
Targets
-
Drugs
Get started for free today!
Accelerate Strategic R&D decision making with Synapse, PatSnap’s AI-powered Connected Innovation Intelligence Platform Built for Life Sciences Professionals.
Start your data trial now!
Synapse data is also accessible to external entities via APIs or data packages. Leverages most recent intelligence information, enabling fullest potential.