In fiscal 2017, Sorrento Therapeutics (SRNE) generated total revenue of $151.8 million compared to $8.1 million in fiscal 2016. The company receives revenues from grants, royalties and licenses, and sales and services.
Sales and services revenue rose from $3.1 million in fiscal 2016 to $11.2 million in fiscal 2017. The significant jump in the company’s total revenue was attributable to an increase in royalty and licensing revenue, which rose from $4 million in fiscal 2016 to $140.3 million in fiscal 2017 due to revenue recognition from the intangibles Sorrento transferred to Celularity under the contribution agreement between the companies in fiscal 2017.
Sorrento Therapeutics incurred general and administrative expenses of $38.3 million in fiscal 2017 compared to $24.2 million in fiscal 2016. This increase was due to higher salaries, stock-based compensation, and legal costs related to acquisitions.
The growth in Sorrento’s revenue helped it generate operating income of $25.3 million compared to its operating income of -$96.7 million in fiscal 2016. Sorrento incurred interest expenses of $5 million in fiscal 2017 compared to $1.6 million in fiscal 2016.
Sorrento Therapeutics’ net income in fiscal 2017 was $9.1 million compared to its net income of -$63.9 million in fiscal 2016. This translated to net income per share of $0.13 in fiscal 2017 compared to net income per share of -$1.21 in fiscal 2016.
Between December 28, 2017, and March 27, 2018, Sorrento’s share price rose from $3.65 to $6.30. During this period, the stock reached a high of $10 on February 28, 2018, but it took a beating amid last week’s market volatility.
Sorrento Therapeutics’ current enterprise value (or EV) is $594.5 million. Its EV-to-revenue ratio stands at 3.91, and its price-to-book ratio is 2.38.