Sorrento Therapeutics Inc. (SRNE): Wildcat Capital Management Growing Impatient With Lack of Disclosure, Repeats Demands

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We reported recently that Leonard A. Potter‘s Wildcat Capital Management had sent a letter to the board of Sorrento Therapeutics Inc. (NASDAQ:SRNE), restating its previous demands that Dr. Ji be removed as CEO of the company, that the pending Financing Transaction be terminated, and that three directors nominated by Wildcat Capital Management and Bonderman Family Limited Partnership (BFLP), be appointed to the company’s board. A newly-amended 13D filing with the Securities and Exchange Commission revealed that Wildcat Capital Management has sent yet another letter to the company’s board, repeating the above-mentioned requests. In addition, the newest letter stresses Wildcat Capital Management and BFLP’s worries about the board’s inactivity regarding the issues discussed in the previous letters (submitted on May 5 and May 10), and that the fund wants to litigate the shareholder derivative action filed on May 13, 2016, in the Court of Chancery of the State of Delaware. Wildcat Capital Management owns almost 2.80 million shares of Sorrento Therapeutics (NASDAQ:SRNE), which amass 7.0% of the total amount of shares.

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Sorrento Therapeutics (NASDAQ:SRNE) is a biopharmaceutical company that works on developing various medical therapeutics that could help patients deal with difficult medical issues such as the treatment of chronic cancer pain. Recently, the company reported that its partner, Mabtech Ltd., had successfully finished a combined Phase 2 & 3 clinical study in China for STI-004, a biosimilar antibody for Omalizumab (Xolair®). Over the past 12 months, Sorrento’s shares have lost 50.25%.

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Wildcat Capital Management held the largest position in Sorrento Therapeutics (NASDAQ:SRNE) within our database on March 31, worth close to $14.1 million. The second most-valuable position was disclosed by Bihua Chen’s Cormorant Asset Management, valued at $11.3 million. Remaining investors long the stock were Behzad Aghazadeh’s venBio Select Advisor, Hal Mintz’s Sabby Capital, and Israel Englander’s Millennium Management.

Investors who, on the other hand, lost interest in Sorrento Therapeutics (NASDAQ:SRNE) during the quarter and sold off their entire stakes in the company were Cliff Asness’ AQR Capital Management and Ken Griffin’s Citadel Investment Group, which sold off their positions worth about $1.1 million and $0.3 million, respectively.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Wildcat Capital Management 0 2,676,193 0 2,676,193 2,676,193 6.7%
Wildcat Liquid Alpha 0 184,000 0 184,000 184,000 0.5%
Infinity Q Capital Management 0 123,597 0 123,597 123,597 0.3%
Infinity Q Management Equity 0 123,597 0 123,597 123,597 0.3%
Infinity Q Diversified Alpha Fund 0 123,597 0 123,597 123,597 0.3%
Bonderman Family Limited Partnership 0 2,799,790 0 2,799,790 2,799,790 7.0%
Leonard A. Potter 0 2,799,790 0 2,799,790 2,799,790 7.0%
James Velissaris 0 123,597 0 123,597 123,597 0.3%

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Page 1 of 14 – SEC Filing


(Rule 13d-101)

(Amendment No. 5)


Sorrento Therapeutics, Inc.
(Name of Issuer)
Common Stock, par value $0.0001 per share
(Title of Class of Securities)
(CUSIP Number)

A. Potter

and Managing Member

Capital Management, LLC

Seventh Avenue

York, NY 10106


Address and Telephone Number of Person

to Receive Notices and Communications)

June 1, 2016
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule
13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e),
240.13d-1(f) or 240.13d-1(g), check the following box. ☐

Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7
for other parties to whom copies are to be sent.

(Continued on following pages)

(Page 1 of 14 Pages)


* The remainder of this cover page shall be filled
out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent
amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this
cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”)
or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however,
see the Notes).

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