Sorrento Therapeutics Inc (NASDAQ:SRNE) said on Monday that it had rejected an unsolicited acquisition proposal from the two pharmaceutical companies, saying it significantly undervalued the drugmaker and was not in best interests of its stockholders.
The buyout is all-cash deal on Saturday, offered between $3 and $5 for each of Sorrento Therapeutics’s outstanding shares, the company said.
Sorrento Therapeutics Inc (NASDAQ:SRNE) would have been valued at $709.4 million, at the higher end of the offer, while its current market cap stands at nearly at $227 million.
Meanwhile, Sorrento Therapeutics said that its pending discussions for licensing and collaboration partnerships for its immuno-oncology products, alone represent more value than the proposal. On Friday, Sorrento Therapeutics Inc (NASDAQ:SRNE) shares surged 30% in premarket trading.
At time of this writing on Tuesday shares are trading down 7.07%
