Sorrento Therapeutics (NASDAQ:SRNE) news about the company receiving an unsolicited offer of acquisition has SRNE stock soaring on Monday.
According to a Sorrento Therapeutics news release, the offer was received by the company on Saturday. The offer came from two biopharmaceutical companies and valued SRNE stock between $3.00 and $5.00 per share in cash. The companies aren’t named by SRNE.
Sorrento Therapeutics notes that it went over the offer but ultimately decided to decline it. This decision was made with the full support of the company’s Board of Directors. The offer valued SRNE stock at a premium range of 87.50% to 212.50% from its closing price on Friday.
Sorrento Therapeutics gives a strong reason for rejecting the offer. The company notes that it is already in active late-stage licensing and collaboration discussions with leading biopharmaceutical companies. Due to this, it believes that SRNE stock has more short-term and long-term value than the offers made.
Henry Ji, Chairman and Chief Executive Officer of SRNE, says this about the Sorrento Therapeutics news.
“The Sorrento Board of Directors and management team are committed to serving the best interests of the Company and Sorrento stockholders, and are confident in the Company’s strategic direction and our ability to implement it”
SRNE stock was up 89.26% as of Monday afternoon. The increase seen by the stock today is enough to wipe out its year-to-date decline of 39.40%.
As of this writing, William White did not hold a position in any of the aforementioned securities.
