SRNE - Why Sorrento Therapeutics Stock Is Crashing Today
Shares of the commercial-stage biopharma Sorrento Therapeutics (NASDAQ: SRNE) are having a tough time today. Specifically, the drugmaker's stock is down by a hefty 56.3% as of 11:22 a.m. Monday morning.
What's sparking this dramatic sell-off? Ahead of the opening bell, Sorrento released an 8-K filing with the U.S. Securities and Exchange Commission revealing the company, and its wholly owned direct subsidiary Scintilla Pharmaceuticals ("the debtors"), have voluntarily commenced a Chapter 11 bankruptcy proceeding in the U.S. Bankruptcy Court for the Southern District of Texas.
This Chapter 11 bankruptcy move appears to be linked to the company's ongoing litigation against billionaire biotech investor Dr. Patrick Soon-Shiong and entities he controls. This litigation centers around a 2015 joint venture known as NANTibody.
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Why Sorrento Therapeutics Stock Is Crashing Today