[Ip-health] Sorrento Therapeutics sues Patrick Soon-Shiong, over alleged blocking of FDA registration of Cynviloq

James Love james.love at keionline.org
Thu Apr 4 03:31:30 PDT 2019

Patrick Soon-Shiong, reportedly worth about $9 billion, once rumored to be
Trump's choice to head the NIH, and the owner of the LA Times and the San
Diego Union-Tribune, is being accused to blocking the FDA registration of
Cynviloq, a cancer drug that would compete with Abraxane.


Billionaire Los Angeles Times Owner Patrick Soon-Shiong Accused Of
‘Catch-And-Kill’ Scheme—With A Cancer Drug
Michela Tindera, Forbes Staff
Apr 3, 2019

Biotech billionaire faces accusations of fraud for $1.3B ‘catch-and-kill’
cancer drug deal
John Carroll — on April 3
Updated: April 4, 201

Sorrento Therapeutics sues Soon-Shiong, alleging it was shortchanged in
cancer drug sale
APR 03, 2019 | 9:15 PM

Sorrento Therapeutics sues Soon-Shiong, alleging it was shortchanged in
cancer drug sale

Dr. Patrick Soon-Shiong, in a statement, called the lawsuit "a cynical
attempt to deflect from Sorrento’s own breach of contract." (Eduardo
Contreras / San Diego Union-Tribune)

A San Diego biopharmaceutical company is accusing its business partner,
biotech entrepreneur Dr. Patrick Soon-Shiong, of orchestrating a “catch and
kill” plan that ultimately prevented the release of a promising cancer drug.

. . .

In the arbitration case, the biotech firm charges that Soon-Shiong
purchased and then sought to kill Sorrento’s experimental drug, Cynviloq,
before it could reach market. The drug candidate was lauded as a
next-generation spin on Abraxane, the anti-cancer drug Soon-Shiong sold to
Celgene for $2.9 billion in 2010. Soon-Shiong later “orchestrated a secret,
illegal transaction” to recoup the funds he paid for Cynviloq, according to
the civil case.

. . .l

The legal dispute dates to late 2014, when Cynviloq was supposedly on track
to be cleared by the U.S. Food and Drug Administration. Cynviloq was
modeled after Abraxane, with a few tweaks to the drug’s design so that it
could be administered to patients more efficiently and at a lower cost.
Abraxane, according to court documents, sells for $1,378 per dose in the
U.S. and has no direct competition. In South Korea, however, the price is
$270 per dose because of competition from Cynviloq, which is sold there for
$180 per dose under the name Genexol-PM.

The suit says Soon-Shiong approached Sorrento Chief Executive Henry Ji,
hoping to broker a deal between Sorrento and Celgene for the drug. When it
appeared in early 2015, however, that the Federal Trade Commission would
object to the deal, Soon-Shiong, who owns a stake in Celgene, proposed that
his own company, NantPharma, acquire the drug instead, the civil suit says.

In May 2015, NantPharma acquired Sorrento’s subsidiary IgDraSol Inc., which
held the Cynviloq assets. Soon-Shiong’s company paid $90 million in cash
and agreed to $1.2 billion of payments pegged to certain milestones, some
contingent on FDA approvals. The latter payments did not materialize.

Sorrento claimed that by mid-2016 Soon-Shiong hadn't pushed forward with
FDA approval and let critical patents lapse. Soon-Shiong said Sorrento
misrepresented the drug’s status with the FDA and failed to deliver on
other research commitments.

. . .

James Love.  Knowledge Ecology International
U.S. Mobile +1.202.361.3040
U.S. office phone +1.202.332.2670
http://www.keionline.org <http://www.keionline.org/donate.html>

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