Shares of Sorrento Therapeutics Inc (NASDAQ:SRNE) have fallen 22% in extended-market trading after the biopharmaceutical company announced a proposed public offering of common stock, all of which will be offered and sold by Sorrento. Both Cantor Fitzgerald and FBR will be book runners of the offering, with the exact pricing and size to be determined. Judging by the market reaction, however, it certainly seems that many investors expect the price of the offering to be at a considerable discount to Wednesday’s closing price of $2.95 per share.
Sorrento Therapeutics’ primary therapeutic focus is oncology, including the treatment of chronic cancer pain. The company’s potential products in the pipeline include Chimeric Antigen Receptor-T Cell programs, resiniferatoxin, and biosimilar/biobetter antibodies clinical development programs.
What Does The Smart Money Sentiment Say?
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According to our data, the smart money wasn’t too bullish on Sorrento in Q4. Of the 742 elite funds we track, 4 funds owned $31.43 million of Sorrento Therapeutics Inc (NASDAQ:SRNE) and accounted for 11.10% of the float on December 31, down from 5 funds and $50.34 million on September 30. In terms of specific activity surrounding Sorrento Therapeutics Inc (NASDAQ:SRNE), Leonard A. Potter‘s Wildcat Capital Management maintained its stake of 2.799 million shares in Q4, while Bihua Chen‘s Cormorant Asset Management started a new stake of 1.9 million shares in the same time period.
The Bottom Line
Sorrento Therapeutics Inc (NASDAQ:SRNE) shares have fallen sharply in extended-market trading due to a proposed stock offering. For more reading, check out ‘11 Most Sold Non Prescription Drugs‘.