Sorrento Therapeutics successfully completes acquisition of Virttu Biologics

Sorrento Therapeutics announced that it has successfully completed the transaction for acquisition of Virttu Biologics.

In consideration for the acquisition, Virttu equity holders received an aggregate of 797,081 shares of common stock of Sorrento based on a $5.55 price per share and reimbursement of certain legal fees and will be eligible to receive an additional approximately $20 million in stock of TNK shares should TNK close a third party equity financing of at least $50 million in proceeds within 12 months of the closing of this transaction. If a financing in TNK has not occurred within 12 months of the closing of this transaction, the equity holders of Virttu will be issued an aggregate of approximately 3,600,000 of Sorrento common stock based on a $5.55 price of Sorrento common stock. Additionally, Virttu will be eligible to receive two additional milestone payments of up to $10 million based on the two first marketing authorizations of Seprehvir to occur in the US, EU or Japan. Each of the two marketing authorization milestone payments will be for $5 million payable in cash, Sorrento common stock, the common stock of another publicly traded company, or a combination thereof to be determined by TNK at the time that a regulatory milestone is triggered.

Virttu Chief Commercial Officer, Daniel Young, said that they are delighted to announce the completion of TNK’s acquisition of Virttu.  The combination of their oncolytic backbone combined with Sorrento’s extensive G-MAB fully human antibody library represents a powerful union for the next generation of multi-modality immunotherapies. They look forward to working closely on developing Seprehvir’s approval pathway and moving their next generation into the clinic.