Biotech Billionaire Bets $20 Million On Sorrento Therapeutics, Inc.
December 16, 2014
By Mark Terry, BioSpace.com Breaking News Staff
San Diego, Calif.-based Sorrento Therapeutics, Inc. announced yesterday that it penned an agreement with Patrick Soon-Shiong, founder of Culver City, Calif.-based NantWorks. Under the deal, NantWorks and Sorrento will create a global strategic partnership to jointly develop immunotherapies for cancer and autoimmune diseases.
Part of the agreement involves the two companies setting up a subsidiary, The Immunotherapy Antibody JV, with $20 million initial joint funding. Soon-Shiong’s affiliated entity will purchase a 19.9 percent equity stake in Sorrento by buying common stock at $5.80 per share. Sorrento grants the purchaser a three-year warrant to buy 1,724,138 shares of common stock at that price.
“We are extremely pleased to be working with Dr. Patrick-Soon Shiong and NantWorks. The investment into Sorrento and future formation of the JV with NantWorks further validate our G-MAB antibody technology and underscore Sorrento’s commitment to seeking strategic alliances in bringing its diverse portfolio of fully human monoclonal antibodies, ADCs, and bispecific antibodies into the clinic,” said Henry Ji, Sorrento president and chief executive in a statement. “Our innovative collaboration will unite Sorrento’s capabilities to develop complex biologics with NantWorks proprietary genomic and personalized medicine technologies.”
NantWorks, LLC was founded by Soon-Shiong, who was the inventor of the first human nanoparticle chemotherapy drug, Abraxane. The joint venture, Immunotherapy Antibody JV, plans to develop multiple immuno-oncology monoclonal antibodies (mAbs) for cancer treatment. Included in their efforts are anti-PD-1, anti-PD-L1, anti-CTLA4 mAbs, as well as other immune-check point antibodies and antibody drug conjugates.
Sorrento focuses on cancer treatments and related pain management. The company’s lead product is Cynviloq, a nanoparticle paclitaxel, which began its registrational trial in March of this year and is under development through the abbreviated 505(b)(2) pathway. In addition, Sorrento is developing RTX, a non-opiate TRPV1 agonist. The NIH is currently studying it in a Phase 1/2 study to treat terminal cancer patients with intractable pain.
“Combining NantWorks’ cutting edge expertise in genomic and molecular profiling of cancer patients and Sorrento’s industry-leading G-MAB antibody technology, we believe will enable us to develop multiple novel therapies for malignant disorders where there is currently a significant unmet need,” said Soon-Shiong in a statement. “Through this partnership, it is our goal to provide relief for millions of people who today have limited treatment options. This will be a model relationship aligned to accelerate development and production of novel cancer immunotherapies.”