Sorrento Therapeutics rejects near $1 billion offer, shares fall

(Reuters) - Sorrento Therapeutics Inc SRNE.O said on Monday it had rejected a proposal by a private equity fund for a majority or all of its outstanding shares that had valued the drug developer at as much as $993 million.

Shares of the company fell 7.5% to $3.95 in premarket trade.

Sorrento said the proposal of up to $7 per share received earlier this month undervalued it and was not in the best interest of its shareholders.

In November, the company had rejected an unsolicited buyout proposal from two pharmaceutical companies, which offered between $3 and $5 for each of Sorrento’s outstanding shares.

The drugmaker has not disclosed the names of the private equity fund nor the two pharmaceutical companies and said it would continue to pursue potential tie-ups and transactions.

The cancer therapy developer has one therapy, ZTlido, approved in the United States for relieving nerve pain following shingles infection.

Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi