Sorrento Therapeutics Inc (NASDAQ: SRNE) was one of the biggest gainers in Monday’s trading session. The stock closed the day with gains of 94.37%. This followed news that the company had rejected a buyout offer from two unnamed companies. The two companies had proposed to buy all outstanding shares of the company for between $3 and $5. This appears to have tickled investors, given the price action and the high volumes that followed this news.
Besides news of the rejected buyout offer, the company also announced that it was in the final stage of licensing and mutual collaboration talks with biopharma companies. The company believes that these talks that involve its oncology treatments. This it said, meant that the buyout offer of between $3 and $5 was undervaluing the company. To put this into perspective, the buyers had pegged Sorrento’s value at around $709.4 million when on the higher side. The company’s current market value is around $227 million.
On top of its push towards collaboration with other companies in the area of immune-oncology, the company is also a developer of a nerve pain-relieving treatment is approved in the U.S. The stock’s current price action seems to have reversed a bear run that has this stock has sustained for the better part of the year. Since it peaked out in March, the company has been making new lows as seen in the chart below. However, in yesterday’s session, it gapped up in a bullish reversal pattern and closed way higher than any other day in the past month. This reversal was backed by high volumes that hit 75.16 million in the day.
About Sorrento Therapeutics Inc
Sorrento Therapeutics Inc is a biotech firm that researches and develops therapies for the treatment of chronic cancer pain. Some of its products include resiniferatoxin and ZTildo. It has its headquarters in San Diego, California.