Sorrento Theraputics Inc. filed for bankruptcy protection

Cash equivalent assets of 88.7 billion won as of the third quarter of last year. 1.3 trillion in total assets

222 billion worth of lawsuits lost

Subsidiary Scilex has nothing to do with court receivership

Sorrento Theraputics Inc.

 

researchers are studying candidate materials

Sorrento Theraputics Inc., a U.S.

 

bio company invested by Yuhan Corporation, filed for bankruptcy protection in the Southern Texas Bankruptcy Court.

 

Bankruptcy protection is a system similar to Korean court receivership.

 

Sorrento Theraputics Inc.

 

recently lost a damage suit worth 222 billion won, resulting in a short-term cash liquidity crisis.

 

Its subsidiary Sciplex plans to continue its business regardless of Sorrento Theraputics Inc.'s bankruptcy protection procedures.

 

According to industries on the 14th, Sorrento Theraputics Inc.

 

filed for bankruptcy protection with the bankruptcy court in accordance with Chapter 11 of the U.S.

 

Bankruptcy Act the previous day.

 

Sorrento Theraputics Inc.

 

is a new antibody drug development bio company listed on the Nasdaq.

 

In 2016, 12.1 billion won was invested by Yuhan Corporation in the name of simple investment.

 

Yuhan Corporation's stake in Sorrento is 0.6%.

 

Through a joint venture, the two companies also established ImmuneOncia, a bio company specializing in developing new drugs specializing in immuno-cancer drugs.

 

Chapter 11 of the Bankruptcy Act, which Sorrento filed with the Bankruptcy Court, is a system that seeks corporate rehabilitation by conducting restructuring procedures under the supervision of the Bankruptcy Court.

 

It can be seen as similar to domestic court management.

 

Unlike liquidation, which closes its business after clearing assets and liabilities, bankruptcy protection is a way to revive companies through government support and debt restructuring while carrying out projects such as R&D and investment attraction.

 

Earlier, United Airlines, General Motors, and Chrysler revived through Chapter 11.

 

The bankruptcy court accepts the Chapter 11 application if it deems it more economically profitable to normalize a company by means of cancellation or suspension of repayment of some or all of its liabilities.

 

However, if the bankruptcy court determines that the rehabilitation plan is inappropriate, it may proceed with liquidation in accordance with Chapter 7 of the Bankruptcy Act.

 

Sorrento filed for bankruptcy protection due to a short-term cash liquidity crisis.

 

Sorrento explained that as of the date of filing for bankruptcy protection, it has more than 1.2685 trillion won in assets, including 158.6 billion won in damages against NantPharma and others, regarding the dispute over the right to sell the anticancer drug Cynviloq.

 

During the same period, the debt was 298.1 billion won.

 

The cash liquidity crisis occurred when Sorrento filed a lawsuit with Nant Pharma and others.

 

NantPharma introduced the North American copyrights and pipelines of the anti-cancer drug Sinbilock, which was introduced by Samyang Holdings in 2015, with an advance of 114.2 billion won.

 

The maximum contract amount, including technical fees according to the development stage, is 1.6491 trillion won.

 

NantPharma has not released Sinviloc in the North American market.

 

Sorrento filed a lawsuit, claiming that Patrick Sunxion, chairman of Abraxis Bioscience, who had a relationship with NantPharma for not releasing Sinviloc, introduced competitive drugs to protect the market status of Abraxane, an anticancer drug, in the early stages of its launch.

 

The court recently ruled that Sorrento should compensate NantPharma subsidiary Nantcell for 222 billion won worth of damage.

 

Of the total, 158.6 billion won was suspended for 70 days, but 63.4 billion won was decided to be immediately enforceable.

 

If not implemented, the interest rate is 9%.

 

After the results of the lawsuit were announced, Sorrento's stock price fell 72% from $0.94 the previous day to $0.26.

 

Sorrento explained that it submitted an application for bankruptcy protection to protect the company, judging that the business operation and development of new drugs could be suspended due to the cash liquidity crisis following the result of the damage suit.

 

As of the third quarter of last year, Sorrento's cashable assets are worth 88.8 billion won.

 

Sorrento Theraputics Inc.

 

also stressed that it will continue to develop new drugs in connection with the bankruptcy protection filing.