Why Sorrento Therapeutics Was Right to Reject Takeover Bids With A 245% Premium

Takeover bids offering a 245% premium over Sorrento Therapeutics's (NASDAQ: SRNE) $1.45 share price last month might seem like a seize-the-day sort of moment. Especially considering Sorrento's financial situation.

The company's earnings missed analyst estimates for the past four quarters and it reported sales of $5.8 million in the most recent quarter, while its net loss was about $64 million. But the biotech company with a pipeline in immuno-oncology and non-opioid pain management didn't snap up the takeover offers, and instead sent the two unidentified buyers, offering between $3 and $5 per share, on their way.

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Source Fool.com