San Diego Business Journal

2 San Diego Drugmakers Price Secondary Public Offerings

Monday, October 28, 2013

MEI Pharma Inc. and Sorrento Therapeutics, both San Diego-based drugmakers, have announced secondary public offerings of about $35 million apiece.

MEI Pharma Inc. has announced a public offering of 4.4 million shares, from which it expects to raise about $35 million. The shares will be priced at $8 per share.

Stock for MEI Pharma (Nasdaq: MEIP) dropped 12 percent upon announcement of the news, closing day trading Oct. 25 at $8.41 per share.

The company’s drug, pracinostat, is undergoing clinical trials for blood disorders like acute myeloid leukemia.

Sorrento Therapeutics Inc. has announced a public offering of 4.8 million shares of stock, with plans to raise about $34.6 million at $7.25 per share.

Stock for Sorrento Therapeutics (Nasdaq: SRNE) rose 10 percent following the news, closing day trading Oct. 25 at $8.62 per share.

The company has a number of drugs in its pipeline, with a focus on a number of cancers, as well as methicillin-resistant Staphylococcus aureus (MRSA) and inflammatory disorders.

The company recently transitioned earlier this month from the OTC markets to the Nasdaq. Sorrento Therapeutics recently acquired two companies in late stage trials – New York-based Sherrington Pharmaceuticals and Fountain Valley, Calif.-based Igdrasol Inc — in order to complete the switch to the larger public markets, it said in a September interview.

— Meghana Keshavan