Sorrento Therapeutics (NASDAQ:SRNE) Inc plunged more than 60% after it was revealed the biopharmaceutical company has filed for Chapter 11 bankruptcy protection as its debts mount amid lawsuits.
Sorrento and its wholly-owned subsidiary Scintilla Pharmaceuticals Inc have commenced voluntary bankruptcy proceedings in the US Bankruptcy Court for the Southern District of Texas “to protect the company’s business and maximize its value,” according to a document filed with the SEC on Monday.
The filing comes amid an ongoing legal battle between the company and biotechnology investor Dr Patrick Soon-Shiong and related entities.
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The company lost an arbitration battle against Soon-Shiong's immunotherapy biotechnology company NantPharma LLC in December 2022. An arbitrator awarded NantCell almost $156.8 million and NANTibody close to $17 million.
Sorrento’s Nasdaq-listed shares were down 61.3% to US$0.36 at mid-afternoon on Monday.
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