Sorrento Therapeutics News: Why SRNE Stock Is On The Move

Recent Sorrento Therapeutics news has SRNE stock on a roller coaster ride today.

Sorrento Therapeutics News: Why SRNE Stock Is On The MoveSorrento Therapeutics News: Why SRNE Stock Is On The MoveSource: Shutterstock

Sorrento Therapeutics (NASDAQ:SRNE) announced today that its majority owned subsidiary Scilex Pharmaceuticals is merging with Semnur Pharmaceuticals. This merger has the two companies coming together in an effort to create a leader in the non-opioid pain medicine market. The new company’s name is Scilex Holding Company

The Sorrento Therapeutics news means that the company’s stake in Scilex Pharmaceuticals is being converted into a new stake at the combined company. This has its 77% stake in Scilex Pharmaceuticals becoming a 58% stake in Scilex Holding Company.

“This transaction is highly synergistic,” Dr. Henry Ji, Chairman and CEO of Sorrento Therapeutics, said in a statement. “Scilex has built up a commercial organization with over 100 highly experienced sales representatives, fully staffed marketing, market access, and medical liaison teams while Semnur has a very exciting Phase 3 compound in non-opioid pain management.”

Scilex Pharmaceuticals’ ZTlido is already performing well in the early months of its commercial release. Semnur also has a compound that is in a Phase 3 trial and could also be a strong win for the newly-merged company.

The Sorrento Therapeutics news today has SRNE stock on a wild ride. It started off up up 8% on Friday morning and reached a peak increase of 24% during morning trading. However, the stock is now down 9% as of Friday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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