Current Report Filing (8-k)
September 14 2020 - 6:04AM
Edgar (US Regulatory)
0000850261
false
0000850261
2020-09-08
2020-09-08
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest
event reported): September 8,
2020
SORRENTO THERAPEUTICS, INC.
(Exact Name of Registrant as Specified
in its Charter)
Delaware
|
|
001-36150
|
|
33-0344842
|
(State or Other Jurisdiction
of Incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.)
|
4955 Directors Place
San Diego, CA 92121
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number,
including area code: (858) 203-4100
N/A
(Former Name, or Former Address, if Changed
Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Securities Registered pursuant to Section 12(b) of the Act:
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, $0.0001 par value
|
|
SRNE
|
|
The Nasdaq Stock Market LLC
|
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 1.01. Entry into a Material Definitive
Agreement.
On September 8, 2020, Sorrento Therapeutics,
Inc. (the “Company”) entered into a patent and know-how license agreement (the “License Agreement”) with
Mayo Foundation for Medical Education and Research (“Mayo”). Pursuant to the License Agreement, among other things,
Mayo granted the Company a sublicensable license under certain of Mayo’s patents, know-how, and materials relating to targeted
nanoparticle therapies (“Patent Rights”, “Know-How”, and “Materials”, respectively) to reproduce,
use, commercialize, and exploit related products, processes and services (“Licensed Products”) for the prevention,
diagnosis and/or treatment of human diseases and conditions worldwide. The license is exclusive (subject to certain exceptions
and conditions) with respect to the Patent Rights and Materials and non-exclusive with respect to the Know-How.
As consideration for the license under
the License Agreement, the Company has agreed to (i) pay Mayo an upfront license fee of $9.3 million (the “Upfront Fee”),
(ii) reimburse Mayo up to $3.4 million for preclinical and clinical research expenses associated with the Know-How, Patent Rights
and Materials arising prior to the entry into the License Agreement, and (iii) reimburse Mayo approximately $2.0 million for expenses
related to the development and manufacturing of the Materials arising prior to the entry into the License Agreement.
The Upfront Fee may be comprised: (i)
solely of common stock of the Company ("Common Stock"), or (ii) of a combination of no more than 25% cash and the remainder
in Common Stock, in each case as determined by the Company. If the Company elects
to make any payment in shares of Common Stock, the per share price used for calculating the number of shares of Common Stock
issuable to Mayo shall be the volume weighted average price of the shares of Common Stock for the eleven trading days
beginning on the fifth trading day prior to September 8, 2020; provided that the shares will not be issued at a price that is
less than $4.96 or greater than $7.44 per share. The Company has also agreed to file a registration statement registering any
shares of Common Stock that the Company issues to Mayo under the License Agreement within 30 days of the issuance
thereof.
The Company also agreed to pay Mayo (i)
certain milestone payments upon the initiation of certain clinical trials, (ii) certain milestone payments upon the receipt of
certain regulatory approvals, and (iii) certain milestone payments upon the achievement of certain commercial sales milestones.
The Company will also pay certain royalties
in the low-single digit to mid-single digit percentages of annual net sales of Licensed Products by the Company and a share of
any sublicense revenue received by the Company from sublicensees.
The foregoing summary of the License Agreement
does not purport to be complete and is qualified in its entirety by reference to the full text of the License Agreement. A copy
of the License Agreement will be filed with the Securities and Exchange Commission (the “SEC”) as an exhibit to the
Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 (the “Form 10-Q”) or via an
amendment to this Current Report on Form 8-K. Certain terms of the License Agreement have been omitted from this Current Report
on Form 8-K and will be omitted from the version of the License Agreement to be filed as an exhibit to the Form 10-Q or via an
amendment to this Current Report on Form 8-K pursuant to Item 601(b)(10) of Regulation S-K because such terms are both (i) not
material and (ii) would likely cause competitive harm to the Company if publicly disclosed.
The representations, warranties and covenants
contained in the License Agreement were made only for purposes of such agreement and as of specific dates, were solely for the
benefit of the parties to the License Agreement, and may be subject to limitations agreed upon by the contracting parties. Accordingly,
the License Agreement is incorporated herein by reference only to provide investors with information regarding the terms of the
License Agreement, and not to provide investors with any other factual information regarding the Company or its business, and should
be read in conjunction with the disclosures in the Company’s periodic reports and other filings with the SEC.
Item 8.01. Other Events.
On September 14, 2020, the Company issued
a press release announcing its entry into the License Agreement. A copy of the press release is filed herewith as Exhibit 99.1
to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01. Financial Statements and
Exhibits.
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
SORRENTO THERAPEUTICS, INC.
|
|
|
|
|
|
Date: September 14, 2020
|
By:
|
/s/ Henry Ji, Ph.D.
|
|
|
|
Name: Henry Ji, Ph.D.
|
|
|
|
Title: Chairman of the Board, President and Chief Executive Officer
|
|
Sorrento Therapeutics (NASDAQ:SRNE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sorrento Therapeutics (NASDAQ:SRNE)
Historical Stock Chart
From Apr 2023 to Apr 2024