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Nantworks Acquires Sorrento Therapeutics Inc (NASDAQ:SRNE) Subsidiary For $90 Million

NantWorks has acquired Igdrasol, a wholly-owned subsidiary of Sorrento Therapeutics Inc (NASDAQ:SRNE) for $90 million. The deal is part of the company’s plans for achieving a breakthrough in the cancer treatment domain. Igdrasol is underway a Phase 3 trial for cancer treatment through the Cynviloq drug. As an alternative to the cancer treatment drug Abraxane by Celgene Corporation (NASDAQ:CELG), the scientists are hopeful that Cynviloq is a cost-effective and more efficient treatment to ward off cancer.

For this deal, NantWorks has created a subsidiary called NantPharma. The company mulls adding another $600 million in the development of the drug and overcoming all regulatory challenges once it reaches the final stage. Additional $600 million is also on cards if the estimated sale targets are achieved.

Breast and Lung Cancer Treatment

In a breakthrough to fight breast and lung cancer, Cynviloq is undergoing Phase 3 trials with an aim to prove that the treatment has bioequivalence to Abraxane drug. The positive results of the studies conducted till now were the main reasons for NantWorks Founder Dr. Patrick Soon-Shiong’s interest in the company.

Sorrento’s CEO Henry Ji said that the deal was a major step in meeting the company’s vision of developing new therapies that can help treat cancer patients efficiently. In an official statement, Henry Ji said that the company was confident that NantWorks expertise will help carry forward the cancer drug towards the goal.

Sorrento And Nantworks Deals

This is not the first collaboration between the two companies, and they are also working on developing immunotherapies for cancer and oncology treatments. The companies signed a $20 million deal in December for the development of cancer immunotherapies and becoming one of the pioneers in cancer treatment.

In 2015, a $ 10million in cash and $100 million in equity has been funded by NantWorks for using Sorrento’s oncology drug trials to developing their drug. The deal entitles Sorrento to get royalties on sales of the final product.

To become a biotechnology company that provides efficient and cost effective treatments for different diseases, NantWorks also has ventures like NantBioScience, NantCell, NantiBodyand NantOmics. All of these are working on achieving a breakthrough in the medicinal world.

Published by Pamela Garcia

Pamela Garcia is a keen follower of U.S. stock market

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