Key Investment Drivers
Marching orders are pipeline focus now
As we enter the final months of 2016, the key point to make for Sorrento is management efforts to provide significant
focus to its pipeline and drill down significantly from its broad assets and technologies. The goal is to have four to five
of Sorrento’s businesses moved significantly forward over the next 12 months. In order to accomplish this, the initial
focus should be on the following initiatives:
• Move a lead biosimilar program forward, likely in the hand of a partner. The company will focus on its lead
biosimilar for Erbitux and emphasize development in the U.S./E.U. Recall positive Phase III studies have
already been conducted in China, however these studies would not suffice for FDA filing. Once data start to
accumulate, the company will also assess whether this is potential for a “biobetter” path as well, which would
require more extensive studies and funding. We believe the biosimilar program represents the “low hanging
fruit” for the company while the earlier stage product candidates mature.
• Move forward with a lead CAR-T program from one of the top three programs (two solid, CEA and PSMA
and multiple myeloma). Based on the current struggles that CAR-Ts are having in solid tumors, we believe
the myeloma candidate may leapfrog the solid tumor candidates. Management is currently planning to
organically fund this lead program.
• Bring forward a lead ADC candidate from Concortis, which we believe will target c-Met. While the assets are
currently preclinical, Concortis is starting to provide meaningful CRO business to Sorrento and over time,
could potentially fund itself.
• Solidify path forward for Resiniferatoxin (RTX) for chronic pain associated with advanced cancer. The
product is part of the Scintilla subsidiary and on September 22, 2016, Scintilla announced the
commencement of an equity financing process. Part of the funds will be used to progress RTX to IND status
in early 2017 for cancer pain and begin Phase II studies in 2017.
Additionally, in order to further monetize the company’s assets, it will continue to, 1) Link with research collaborations,
2) Provide technology to others to validate candidates in specific geographies and 3) Enter partnerships for
candidates where appropriate.
