Sorrento Therapeutics, Inc. (NASDAQ: SRNE; Sorrento) announced today the entry into a definitive agreement to acquire San Diego-based Concortis Biosystems, Corp. in a deal that provides Sorrento with a comprehensive technology platform for generation of antibody drug conjugates (ADC). Under the terms of the agreement dated November 11, 2013, subject to satisfaction of certain closing conditions, upon closing, Sorrento will issue an aggregate of 1,331,978 shares of its common stock to the Concortis shareholders.
This acquisition will enable Sorrento to utilize the antibodies identified from its G-MAB® library along with Concortis' conjugation technologies and novel toxins to create a new generation of ADCs. Concortis' proprietary C-lock™ and K-lock™ conjugation chemistries enable site-specific conjugation of toxins to the antibody, which will produce homogeneous ADCs with well-defined drug antibody ratios (DAR). In contrast, approved ADCs are a heterogeneous mixture with different DARs. This could potentially lead to better ADC stability and pharmacokinetics while reducing off-target effects compared to existing ADCs and therefore, improved therapeutic efficacy and treatment safety.
"This is a transformational event for Sorrento as very few companies have the breadth of capabilities covering all facets of ADC technology, including the antibodies, the conjugation chemistries, and the toxins," said Henry Ji, Ph.D., President and CEO of Sorrento. "We are in an ideal position to become a leading player in this important and rapidly growing field. This also opens up new opportunities for strategic alliances."
As part of the transaction, upon the closing, David (Zhenwei) Miao, PhD, Co-Founder, President and CSO of Concortis will become Sorrento's Chief Technology Officer. Dr. Miao added, "The ADC space has become a fertile area for partnerships or acquisitions due to the recent FDA approvals of Adcetris® and Kadcyla®. We are truly excited by the therapeutic promise of combining our proprietary ADC technologies with Sorrento's vast antibody pipeline."
Sorrento Therapeutics, Inc.