Shares of small-cap biopharma Sorrento Therapeutics Inc (NASDAQ: SRNE) were advancing strongly Friday.
Sorrento, which is engaged in the development of new therapies to turn malignant cancers into manageable and possibly curable cancers, said it has received a non-binding proposal from a private equity fund to acquire a majority stake or the entire company for up to $7 per share.
The upper range of the offer represents a 105% premium over the stock's Thursday closing price.
Sorrento said its board is reviewing the proposal to determine the course of action that's in the best interest of the company and its stockholders.
Sorrento recommended its shareholders take no action at this time.
Sorrento's pipeline consists of a portfolio of immuno-oncology assets that are either in IND-enabling studies or Phase 1 studies. The company also has two experimental assets in its pain management portfolio: ZTlido and resiniferatoxin. The company has submitted an NDA for ZTildo as a treatment option for relieving pain associated with postherpetic neuralgia.
M&A momentum among biopharma companies was strong in 2019.
The stock was trading 42.96% higher at $4.88 at the time of publication.