Soon-Shiong is facing multiple lawsuits
Soon-Shiong is known as a billionaire in the biotech world, but recently his name has been dragged into multiple lawsuits. Multiple companies are stating that Soon-Shiong is not following their best interests, in fact he is actually focused on doing just the opposite.
Sorrento Therapeutics is accusing Patrick Soon-Shiong of creating a catch and kill plan that will prevent the release of a cancer drug. The interesting thing is that Soon-Shiong is a business partner for this entire venture. So he has the power to stop a product from going on the market if he wants to, which is nothing short of problematic for a venture like this.
Soon-Shiong actually has two lawsuits from Sorrento Therapeutics. The company is seeking damages of around $1 billion via an arbitration complaint and $90.05 million via a civil lawsuit. As expected, Patrick Soon-Shiong is not agreeing with the company, he states that the suits are without any merit and he didn’t do anything wrong.
For the arbitration case Sorrento states that Patrick Soon-Shiong acquired and then wanted to kill their drug named Cynviloq before it actually arrived on the market. Since this drug was said to be a next gen Abraxane, it’s easy to see why the company is upset. But they state that Patrick Soon-Shiong whose company created Abraxane wanted to acquire this just to put the company down and continue his drug monopoly for his own interest. He orchestrated an unlawful attack like this and the results are bad as you can see.
According to this case, Patrick Soon-Shiong, two related people from the Precision Biologics board and NantCell withdrew $47 million within 30 days of the $50 million investment. One of the PB shareholders did state that this breached the contract, but it was something that had to be dealt with early on to avoid any possible problems.
Patrick Soon-Shiong is also accused of the fact that at the time of the Cinviloq sale in 2015, the parties actually created a $100 million cancer research venture named Immunotherapy NANTibody. 2 years later Charles Kim and Patrick Soon-Shiong actually drained the venture of all the contributed capital. Now the suit wants the pair to actually pay NantPharma $90.05 million for the former Cinviloq assets. Simply put, this second suit is related to the fact that the doctor ended up repaying himself for the IgDraSol purchase, which is obviously not legal.
It’s very hard to know whether such allegations are true or not. But what we do know is that they exist and it’s important to handle them as quickly as possible for all parties. We will soon know the answer, but at this time Patrick Soon-Shiong clearly states he is innocent and Sorrento continues with the two lawsuits. What we do know is that Patrick Soon-Shiong was also accused by other biotech companies, so this would not be the first allegation. For now the billionaire is not in hot waters, but we will have to wait and see!