Sorrento Awarded California Competes Tax Credit

Rhea-AI Summary

Sorrento Therapeutics (Nasdaq: SRNE) announced the approval of a California Competes Tax Credit Allocation Agreement, providing up to $25 million in tax credits from California's Governor’s Office of Business and Economic Development. This allocation is contingent upon meeting specific milestones and aims to support Sorrento's growth and expansion in California. The company is also expanding its facilities with a new 163,000 square-foot facility in Sorrento Mesa, enhancing its operations and job creation in the life sciences sector.

Positive

• Awarded up to $25 million in tax credits to support expansion.
• Expansion of facilities with a new 163,000 square-foot site in Sorrento Mesa.
• Potential for job creation in the local life sciences industry.

Negative

• None.

SAN DIEGO, Nov. 07, 2021 (GLOBE NEWSWIRE) -- Sorrento Therapeutics, Inc. (Nasdaq: SRNE, "Sorrento") today announced that the California Competes Tax Credit Committee has approved the California Competes Tax Credit Allocation Agreement (the “Agreement”) between Sorrento and the California Governor’s Office of Business and Economic Development (“GO-Biz”). Pursuant to the Agreement, Sorrento has been awarded, subject to the satisfaction of certain milestones specified in the Agreement, an income tax credit from the State of California in an aggregate amount of up to $25,000,000. This incentivized credit is expected to support Sorrento’s vision of growth and expansion within the State of California.

"We are grateful to the State of California and GO-Biz for this award," stated Dr. Henry Ji, Chairman and CEO of Sorrento. "As a company founded in San Diego, we are pleased to be in a position to create more high-quality jobs in San Diego’s vibrant life sciences industry and invest in growing our footprint in the community we call home."

Sorrento is expanding its facilities and operations in San Diego, including the addition of a new 163,000 square-foot facility in Sorrento Mesa, also known as Sorrento Gateway.

About Sorrento Therapeutics, Inc.

Sorrento is a clinical and commercial stage biopharmaceutical company developing new therapies to treat cancer, pain (non-opioid treatments), autoimmune disease and COVID-19. Sorrento's multimodal, multipronged approach to fighting cancer is made possible by its extensive immuno-oncology platforms, including key assets such as fully human antibodies (“G-MAB™ library”), immuno-cellular therapies (“DAR-T™”), antibody-drug conjugates (“ADCs”), and oncolytic virus (“Seprehvec™”). Sorrento is also developing potential antiviral therapies and vaccines against coronaviruses, including Abivertinib, COVIGUARD™, COVI-AMG™, COVISHIELD™, COVI-MSC™ and COVIDROPS™; and diagnostic test solutions, including COVITRACK™, COVISTIX™ and COVITRACE™.

Sorrento's commitment to life-enhancing therapies for patients is also demonstrated by our effort to advance a first-in-class (TRPV1 agonist) non-opioid pain management small molecule, resiniferatoxin (“RTX”), and SP-102 (10 mg, dexamethasone sodium phosphate viscous gel) (SEMDEXA™), a novel, viscous gel formulation of a widely used corticosteroid for epidural injections to treat lumbosacral radicular pain, or sciatica, and to commercialize ZTlido® (lidocaine topical system) 1.8% for the treatment of post-herpetic neuralgia. RTX has completed a Phase 1B trial for intractable pain associated with cancer and a Phase 1B trial in osteoarthritis patients. SEMDEXA is in a pivotal Phase 3 trial for the treatment of lumbosacral radicular pain, or sciatica. ZTlido® was approved by the FDA on February 28, 2018.

For more information visit www.sorrentotherapeutics.com.

Forward-Looking Statements

This press release and any statements made for and during any presentation or meeting contain forward-looking statements related to Sorrento Therapeutics, Inc., under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995 and subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements include statements based on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Risks and uncertainties that could cause our actual results to differ materially and adversely from those expressed in our forward-looking statements, include, but are not limited to: risks related to Sorrento's technologies and prospects; risks related to future performance, including risks and uncertainties that are difficult to predict or are beyond Sorrento’s control, such as the conditions, requirements and utilization of the California Competes Tax Credit; risks related to the global impact of COVID-19; and other risks that are described in Sorrento's most recent periodic reports filed with the Securities and Exchange Commission, including Sorrento's Annual Report on Form 10-K for the year ended December 31, 2020, and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, including the risk factors set forth in those filings. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and we undertake no obligation to update any forward-looking statement in this press release except as required by law.

Media and Investor Relations Contact
Dorman Followwill
Email: mediarelations@sorrentotherapeutics.com

Sorrento® and the Sorrento logo are registered trademarks of Sorrento Therapeutics, Inc.

G-MAB™, DAR-T™, SOFUSA™, COVIGUARD™, COVI-AMG™, COVISHIELD™, COVIDROPS™, COVI-MSC™, COVITRACK™, COVITRACE™ and COVISTIX™ are trademarks of Sorrento Therapeutics, Inc.

SEMDEXA™ is a trademark of Semnur Pharmaceuticals, Inc.

ZTlido® is a registered trademark owned by Scilex Pharmaceuticals Inc.

All other trademarks are the property of their respective owners.

©2021 Sorrento Therapeutics, Inc. All Rights Reserved.

 

FAQ

What is the significance of Sorrento Therapeutics' latest press release?

Sorrento Therapeutics announced a tax credit allocation of up to $25 million to aid its expansion in California.

How much tax credit has Sorrento Therapeutics been awarded?

Sorrento Therapeutics has been awarded up to $25 million in tax credits.

What are the plans for Sorrento Therapeutics' expansion?

Sorrento plans to expand its facilities, including a new 163,000 square-foot location in Sorrento Mesa.

Which government body approved the tax credit for Sorrento Therapeutics?

The tax credit was approved by the California Competes Tax Credit Committee.

What milestones must Sorrento Therapeutics meet to receive the tax credit?

The tax credit is contingent upon Sorrento satisfying specific milestones outlined in the allocation agreement.