SRNE - Why Sorrento Therapeutics Stock Cratered on Friday
Sorrento Therapeutics (NASDAQ: SRNE) ended the week on a down note, tumbling by nearly 11% on Friday on news of a fresh acquisition.
Sorrento revealed in a regulatory filing that it has agreed, through a subsidiary, to purchase ACEA Therapeutics. Sorrento's initial payment is $38 million for the company. Among other terms, ACEA could earn up to an additional $265 million if it hits certain sales and operational milestones.
ACEA is a clinical-stage biotech that concentrates on oncology treatments, and it is already familiar to Sorrento. In May, the latter acquired exclusive rights to ACEA's abivertinib throughout the world, save for China.
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Why Sorrento Therapeutics Stock Cratered on Friday