Why Sorrento Therapeutics Stock Cratered on Friday
Sorrento Therapeutics (NASDAQ: SRNE) ended the week on a down note, tumbling by nearly 11% on Friday on news of a fresh acquisition.
Sorrento revealed in a regulatory filing that it has agreed, through a subsidiary, to purchase ACEA Therapeutics. Sorrento's initial payment is $38 million for the company. Among other terms, ACEA could earn up to an additional $265 million if it hits certain sales and operational milestones.
ACEA is a clinical-stage biotech that concentrates on oncology treatments, and it is already familiar to Sorrento. In May, the latter acquired exclusive rights to ACEA's abivertinib throughout the world, save for China.
Source Fool.com
