Sorrento subsidiary to acquire Scottish biotech Virttu Biologics for $25M in all-stock deal

• Sorrento Therapeutics (NASDAQ:SRNE -4.6%) subsidiary TNK Therapeutics inks an agreement to acquire Glasgow, Scotland-based Virttu Biologics Ltd.
• Privately held Virttu's lead product candidate is a oncolytic immunotherapy based on a modified version of the human herpes simplex virus (HSV-1) called SEPREHVIR. It is designed to kill cancer cells and elicit an anti-tumor immune response.
• Under the terms of the agreement, Virttu shareholders will receive $5M in Sorrento stock at closing, expected in Q1 2017, and $20M in TNK stock within 12 months following the next round of financing.