Sorrento surges on a near 1 billion dollar takeout offer
US: Sorrento Therapeutics Inc said on Friday it had received a proposal from a private equity fund interested in acquiring a majority or all of its outstanding shares, valuing the company at as much as $993 million.
Shares of the company surged 67.74% to $5.72 before the bell, after the drugmaker said it was reviewing the non-binding proposal of up to $7 per Sorrento share.
The market capitalization of the company, which has one therapy, ZTlido, approved in the United States for relieving nerve pain following shingles infection, stood at about 483.8 million as of Thursday's close.The San Diego-based company did not disclose the name of the private equity fund and did not respond immediately to Reuters request for the name.
The proposal comes a few months after the cancer therapy developer rejected an unsolicited buyout proposal from two pharmaceutical companies which offered between $3 and $5 for each of Sorrento's outstanding shares.Sorrento added ZTlido as part of its 2016 acquisition of majority stake in privately held SCILEX Pharmaceuticals Inc.