Shares of Sorrento Therapeutics (SRNE -15.87%) jumped 10.5% on Wednesday, as investors cheered two positive announcements from the biopharmaceutical company.
Sorrento said it completed its acquisition of ACEA Therapeutics for roughly $38 million, as well as up to $450 million in additional payments if certain regulatory approvals and sales goals are met. Sorrento praised the drugmaker's pipeline, which includes abivertinib, which has generated promising clinical trial results in lymphoma and non-small cell lung cancer.
Abivertinib is also being evaluated in phase 2 clinical trials for the treatment of acute respiratory distress syndrome (ARDS) associated with COVID-19. Sorrento said it expects to share the results from this trial by late September.
Separately, Sorrento announced that the Mexican government added Covi-Stix to its official list of rapid antigen tests approved for emergency use in the country. Sorrento's approximately 15-minute diagnostic test outperformed other COVID-19 tests for both sensitivity and specificity in studies conducted by Mexican health officials.
The designation will now allow Sorrento to begin marketing Covi-Stix in Mexico. It could also help the biotech gain additional emergency use authorizations in other Latin American countries, according to management.
Sorrento intends to begin new clinical trials for abivertinib for the treatment of other cancers and autoimmune diseases, including prostate cancer, leukemia, multiple sclerosis, and lupus. The company is also seeking a larger partner to help co-develop and market abivertinib globally.