Sorrento Therapeutics Inc (SRNE)

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Virpax slips as court rules in favor of Scilex and Sorrento


Virpax Pharmaceuticals (NASDAQ:VRPX) traded sharply lower Tuesday after announcing that Sorrento Therapeutics (OTCPK:SRNEQ) and its subsidiary Scilex Pharmaceuticals (NASDAQ:SCLX) won a lawsuit against the company.
Sorrento (OTCPK:SRNEQ), which has filed for bankruptcy, and pain-therapy developer Scilex (SCLX) have engaged in a bitter legal dispute with Virpax (VRPX) and its CEO Anthony Mack since 2021.
In a lawsuit in the Delaware Court of Chancery, the plaintiffs alleged that Mack and Virpax (VRPX) breached an agreement that Mack had signed with SRNEQ when he sold Scilex (SCLX) shares. Sorrento (OTCPK:SRNEQ) acquired Scilex (SCLX) in a deal valued at $47.6M in 2016.
Per the terms, Mack agreed to remain as president of Scilex (SCLX) and not commit to another company that rivals Scilex’s (SCLX) pain therapy ZTlido for two years.
According to the lawsuit, Mack and Virpax (VRPX) breached the agreement when the former stepped down from his position at SCLX in 2018 and established Virpax (VRPX).
On Tuesday, Virpax (VRPX) said that the court ruled in favor of the plaintiffs and that the legal proceedings will continue to determine the damages.