Editor's note: This article has been corrected. On Feb. 13, the Nasdaq Stock Market notified Sorrento Therapeutics that it would be delisting the stock. The stock began trading on Feb. 23 as OTC:SRNE.Q.

What happened

What goes up usually comes down, and that's exactly what happened with Sorrento Therapeutics (SRNE.Q 16.67%) today. Shares of Sorrento were crashing 30.4% as of 3:38 p.m. ET on Wednesday after soaring more than 60% on Tuesday.

Sorrento's huge surge yesterday came after the company announced that a court granted interim approval for a $75 million loan from JMB Capital Partners. Assuming this decision is finalized, Sorrento will be able to continue normal business operations during its bankruptcy process. However, investors today appeared to realize that the prospect of additional cash doesn't change anything about Sorrento's challenges.

So what

There's not much good news for Sorrento these days. The small drugmaker is embroiled in a legal battle with NantCell. After losing in court in December 2022, Sorrento filed for Chapter 11 bankruptcy protection.

Obtaining the $75 million loan won't solve Sorrento's near-term problems. The court ruled in December that the company owes more than $170 million, most of which is due to NantCell. Another decision earlier this month confirmed the previous ruling but issued a stay that will allow NantCell to initially only collect $50 million.

Now what

Sorrento is far from out of the woods. The biotech stock is being delisted by the Nasdaq stock exchange. The only positive for investors is that it owns a majority stake in Scilex Holding Company, which hasn't been impacted by its bankruptcy filing.