Update Article Executive Update: Sorrento Therapeutics (SRNE)
The BioWatch team recently traveled to the headquarters for Sorrento Therapeutics (SRNE) and met with CEO Henry Ji, VP of
Immunotherapy Gunnar Kaufmann, as well as a number of scientists. Ji and his team graciously provided an extended Q&A as well as a general company tour.
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Given the potential behind Sorrento’s technology portfolio, its valuation is a mystery for potential investors. It is real? Or is it smoke and mirrors? The company seems too good to be real. It has a portfolio that dwarfs any other “Small Bio”…and perhaps many “
Big Pharmas” too.
Here’s a list of Sorrento's product technologies in no particular order:
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Key Technologies & Products
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Cellular Therapies
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Other
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GMAB Library
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Allogeneic CAR.TNK
(Directed NK Cells)
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Resiniferatoxin (RTX)
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K-Lock & C-Lock Conjugation
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CAR-T
(Directed T-Cells)
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Cynviloq
(Licensed to NantPharma)
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Mabtech’s BioSimilar and “BioBetter” mAbs
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LA Cell Intracellular Targeting Technology
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Small Molecule Therapeutics
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Bi-specific Antibodies
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Various Stem Cell Targets
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Lee’s Pharma (anti-PD-L1 mAb)
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We are writing a larger review as well as an update of Sorrento. This executive summary is a sample of the coming update. The coming update presents our impressions regarding Sorrento’s ability to execute on its portfolio. We examined Sorrento's execution potential in light of its human and capital assets.
Furthermore, our update will provide notes to three Sorrento technologies:
1)“Biosimilars and BioBetter mAbs;
2)CAR-T technology acquisition;
3)and the intracellular targeting technology from the City of Hope.
We believe that the biosimilars will be the first late stage candidates that will bring significant value to SRNE, while the CAR-T and intracellular technologies appear to be rarely discussed by other writers. We want to fill the void.
Our Brief Thoughts
Sorrento has an extraordinary set of antibody technologies and cell therapies. When you think of Sorrento’s small size, it also seems astonishing. It has an almost unbelievable number of hits on goal with each of its various platform technologies.
Nevertheless, we need to give SRNE time to percolate. It is still early. The wonderful antibody technologies and CART.TNKs are years away from reaching the market. This means that SRNE’s valuation is currently a reaction to milestones with its lead drugs and the new partnerships.
Sorrento doesn’t need to raise capital in the short-term, and hence it doesn’t attract significant investment banking attention. Furthermore, whenever NantPharma achieves regulatory milestones, then large payments will be directed towards Sorrento.
Any short-term validation of Sorrento’s worth will have to arrive from a partnering deal with a major pharma. We don’t see this on the horizon because a lucrative deal usually requires clinical data.
The biosimilars / biobetters are very interesting. These are well-tested versions of approved and well-known mAbs in the USA. Sorrento
acquired rights to 4 biosimilar mAbs from Taizhou Mabtech Pharma in China. Late stage testing has already been completed in China. Sorrrento has exclusive rights to North America, Europe, and Japan. Mabtech’s “BioBetters” typically originated from better cell lines than the “originals”, resulting in mAbs with a better safety profile.
We should see these mAbs enter Phase II/III trials in 2H 2016. While we hope these will become registration trials, it’s still a short path if an additional trial is still required.
While we hope to get the full update out in the next few days, we caution you as our staff hits the holidays.
(At the time this post was written, one or more BioWatch staff held a long position in SRNE)
This blog post is from The Biotech Watcher: https://alanhobbes.blogspot.com/?view=magazine
And about us, see https://alanhobbes.blogspot.com/2014/12/welcome-to-my-personal-thoughts-about.html
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Executive Update: Sorrento Therapeutics (SRNE)
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