Ally Bridge leads $150m round for US cancer treatment firm
San Diego-based cancer treatment developer Sorrento Therapeutics has raised about $150 million from a group of investors led by China-focused healthcare specialist Ally Bridge Group.
The investors will participate in private placements to buy newly issued shares at $5.55 apiece, and will receive warrants to buy common stock at an exercise price of $8.50 per share, according to a release. Completion of the deal is subject to regulatory approval, and is expected to occur by the end of May.
Sorrento will use the new capital primarily to grow its product development pipeline, as well as for general corporate purposes. The US-listed company develops treatments for cancer and other medical conditions that use a patient's own antibodies to attack previously untreatable targets.
South Korean pharmaceutical developer Yuhan Corporation also participated in the investment, along with several unnamed institutional investors. Yuhan and Sorrento are strategic partners, having recently formed the ImmuneOncia joint venture focused on clinical development of antibody treatments based on Sorrento's research.
Ally Bridge's investment strategy is focused on cross-border opportunities. The GP seeks investments in healthcare-focused companies in the US, China and Europe, with a goal of bringing new healthcare technologies to Chinese companies and opening up new customer markets for non-Chinese companies.
Recently the firm participated in a $30 million round for San Diego-based personalized medicine developer AltheaDx alongside WuXi Healthcare Ventures, the corporate venture arm of WuXi PharmaTech. Ally Bridge also supported WuXi's management buyout last year led by chairman Ge Li, which valued the company at about $3.3 billion.
"With the support of today's substantial financing initiated and led by ABG, Sorrento will be able to accelerate the development of these exciting technologies and innovative products to unlock significant value that is currently not recognized," said Frank Yu, founder and CEO of Ally Bridge. "ABG has been working closely with Sorrento in key areas of global expansion, strategic partnerships, and financing."
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