SRNE - Sorrento sheds 28% after bankruptcy filing

• COVID-19 drug and vaccine developer Sorrento Therapeutics ( NASDAQ: SRNE ) lost ~28% pre-market Monday after announcing that the company filed for Chapter 11 bankruptcy in a Texas bankruptcy court.
• More than 416K Sorrento ( SRNE ) shares have already changed hands in the pre-market trading compared to the 65-day average of ~11.3M.
• Sorrento ( SRNE ) said that the company and its subsidiary Scintilla Pharmaceuticals started court proceedings on Feb. 13 in the Bankruptcy Court for the Southern District of Texas.
• The filing comes after a court ruling upheld a decision of the American Arbitration Association to award millions of dollars in damages related to a legal dispute with NantCell and NANTibody.
• Sorrento ( SRNE ) is a notable drug and vaccine developer against COVID-19. In December, the company announced it received FDA clearance to start clinical trials for its mRNA-based COVID-19 vaccine candidate targeted at Omicron variants.
• Seeking Alpha contributor, Kevin Mak argued in January that Sorrento ( SRNE ) “is generally considered a battleground stock with multiple short-seller reports against the company and a moderately fervent retail base of shareholders.”

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