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Sorrento Therapeutics, Inc. Message Board

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  • Reply to

    Jun 30, 2010

    by fearingsf May 28, 2014 7:19 PM

    Abraxane, (formerly called nab-paclitaxel), was approved as treatment of locally advanced or metastatic NSCLC in combination with carboplatin after a phase III trial that found the drug outperformed paclitaxel, with an overall response rate (ORR) among clinical trial participants of 33% vs 25%, respectively. Notably, the ORR was higher for Abraxane than paclitaxel among subgroups of patients with squamous cell carcinoma (41% vs 24%) and large cell carcinoma (33% vs 15%). The most common adverse reactions (≥20%) reported were anemia, neutropenia, thrombocytopenia, alopecia, peripheral neuropathy, nausea, and fatigue.

  • Celgene Corporation (NASDAQ: CELG)and Abraxis BioScience Inc. (Nasdaq: ABII) today jointly announced the signing of a definitive merger agreement. The upfront payment values Abraxis BioScience at approximately $2.9 billion, net of cash.

    "No one is likely to argue that this was a bargain price" for Abraxis, Sanford Bernstein analyst Geoffrey Porges wrote in a note to clients, expecting the valuation to be scrutinized by investors. Regardless, Mr. Porges sees the deal as positive for Celgene, as it remains focused on cancer treatment and can leverage its global commercial infrastructure.

    RBC Capital Markets projected that Abraxane would be approved by the Food and Drug Administration in 2012 for use in lung cancer and late-stage data would be available in pancreatic cancer in 2013.

    Although it was approved in 2005, revenue from the drug has been relatively flat in recent years, coming in at $314.5 million last year, $335.6 million in 2008 and $324.7 million in 2007. Celgene is clearly looking ahead to the future opportunities for Abraxane, as demonstrated by projecting the deal to add $1 billion in revenue by 2015.

  • Do you think it is a good buy at this level? While checking for new secondary offerings I came across this stock. I see that a big insider buy had happened in Dec 2013 and nothing after the latest SPO. Another interesting thing is that OPKO health is a beneficial owner in this company. So, any reasons to buy in here? And reasons not to other than market dislike for bios at this time?

  • The writing was on the wall for the RTX transfer for a long time. Look back at the press releases.

    The decline in the stock was driven by 4 things:

    1. Normal corrective market factors - The stock was hit by the pullback in Biotech, Small Caps, and the NASDAQ high fliers falling back to earth. Biotech stocks RGLS and PBYI are a couple others that really got hit too. So, it was a normal correction.

    2. They shopped the deal - They shopped the deal to institutions which correlates with the recent price action the last 2-3 weeks prior to the raise and especially the few days leading up to it. The "market" knew a raise was coming, at least the institutions did, because they met with management on the current road show in the past few weeks. The little guy gets screwed because they don't get the info til after the raise.

    3. Management not sticking to the plan and delivering milestones per their last raise. When mgmt changes the plan 7 months later the Street gets angry and rightfully so! They have a fantastic chance of getting approval with Cynviloq which will get them easily to a $800M-$1B+ market cap when approved. This is where the value is and once they get approved they can raise tons of money to fund other programs but they haven't "proven" themselves yet.

    4. A combo of investors not having faith in these new programs they raised money for (RTX and ADC/MonoC's) and mgmt looking to raise too much too fast. Think about it as I said in point 3 they changed their plan and expanded too fast without gaining Street Cred. The main issue here is these new platforms are money pits in Phase I at best which means they will need more money again in 18 months.

    The value is in Cynviloq, period!! That is why the Street is upset because they diluted investors for new programs that may or may not work. Cynviloq is worth the risk. The stock still has major long term value if Cynviloq delivers which it should. Mgmt must prioritize Cynivloq to regain confidence.

  • Nice post. Glad to see someone else in here.

    Wouldn't you agree that the RTX progress occurred well after the price started to sell off? So if true, the timing wouldn't work out for your theory. The decline was certainly driven by a factor the market was not aware of, so I agree some news was leaking out.

    Just a may be right if the RTX status was known much further back like in Q4 2013.

  • The issue isn't that they are running out of cash at all. The issue is they are trying to move too fast with what they have on their plate. They are determined to be a big biotech company which may or may not come to fruition. Their cash burn seems be in order but the Orphan status for the RTX drug came through and they rushed into raising money to fund that without much regard to the existing shareholders. They are in too much of a hurry to make it big. And, if Mgmt is listening slow the eff down and deliver on your current programs and Wall Street will reward you with a higher stock price and the money you need for future development programs. Henry, you need to deliver first not keep taking on more programs.

    If you look at the price action of the stock it had a normal correction with the rest of the biotech sector and the NASDAQ in general down to about the $10 area. What happened next is when they shopped the deal, the institutions they were talking to started selling their existing shares and/or shorting the stock knowing that more supply was forthcoming. I'm sure they leaked word to people as well. Shopping the deal most likely pushed the stock down from $9.50 area to $6.70 over the past 2 weeks. Then when they priced the deal because they were in such a hurry they had to do it at a hefty discount to get the money. A few take a ways here are it wasn't the right time to raise money, investors didn't like management's plan, and this deal should not have been done at this time.

    In short, very, very poor execution on management's part. What they should have done was allow the Orphan RTX news to hit the market as positive news bumping the stock up drawing more investors in. They should have then waited til the stock stabilized higher and waited for more favorable conditions and then raised the money for the RTX program. Management no doubt has a plan. The question is can they execute?! If they can then this stock will be great long term. Short term who knows...

    Sentiment: Buy

  • Reply to

    Toxic IPO's

    by ftd_kix May 16, 2014 9:49 AM

    Excellent post. The crooks find new forms of thievery and continue to loot the middle class over and over.

  • Do you know what is going on? Firms are running out of cash because executive salaries are too high. So what they do is issue an IPO to the middle class. Underwriting firms are acting as lead runners on these offerings, and what I suspect is the firms are just buying their own garbage and burying the IPO shares in some fund.

    Think about it. What is $25M of toxic IPO shares with no hope in the medium term to a fund that has $5B in AUM? Its just like the toxic debt on unsecured mortgages. A big hot potato they are all passing around. In the end, these funds are in 401k's of working class Americans, so if anyone suffers its the middle class.

    Rinse and repeat. Transfer of wealth ( middle class 401k contributions) into funds that are burying toxic IPO's. The exec's continue to take in their $300K salaries and above all, the underwriters wring out another commission.

    People who do this should be very ashamed at their lives and what they have become.

    Just my opinion.

  • Reply to

    SRNE hold up well in this blood bath bio correction

    by andy_x69x Apr 15, 2014 11:41 AM

    no longer.

5.29-0.15(-2.76%)2:57 PMEDT

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