SRNE - Sorrento to acquire to acquire late-stage oncology company ACEA Therapeutics

Sorrento Therapeutics (SRNE) has agreed to acquire ACEA Therapeutics in return for $38M of its common stock.The milestone payments could add up to $450M in additional payments subject to certain adjustments per the merger agreement.Sorrento will also pay ACEA equity holders 5 – 10% of annual net sales for products with royalty revenue.The merger is expected to close in Q2 2021 subject to customary closing conditions and regulatory approval.ACEA’s portfolio includes late clinical-stage drug Abivertinib, a small molecule tyrosine kinase inhibitor that has undergone a registrational/Phase 3 trial in non-small cell lung cancer.Late March, Sorrento updated its positive results for COVI-MSC from a Phase 1b study in patients with COVID-19-induced acute respiratory distress (“ARD”) or acute respiratory distress syndrome (“ARDS”).

For further details see:

Sorrento to acquire to acquire late-stage oncology company ACEA Therapeutics