Why Sorrento Therapeutics Stock Slipped Today
Shares of Sorrento Therapeutics (NASDAQ: SRNE) were slipping 5% lower as of 3:24 p.m. EDT on Friday. The decline appears to be related to Sorrento's announcement earlier in the day that it plans to acquire SmartPharm Therapeutics. In the press release announcing the deal, the company also said that it expects to file an Investigational New Drug (IND) Application with the FDA in August for approval to begin a phase 1 study of COVID-19 antibody therapy candidate STI-1499, also known as COVI-GUARD.
One reason why investors might be wary of Sorrento's intended acquisition of SmartPharm is that the financial terms of the deal weren't disclosed. Sorrento isn't anywhere close to reaching profitability and had only $21.9 million in cash and equivalents as of March 31, 2020.
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Source Fool.com
