A major setback for Patrick Soon-Shiong

ImmunityBio’s failure to get the IL-15 superagonist Anktiva approved for BCG-unresponsive non-muscle invasive bladder cancer is a major setback, especially given the growing interest in this space. Ferring’s Adstiladrin was surprisingly approved in the US in December, and recent phase 2 successes include the Core-001 study of CG Oncology’s oncolytic virus cretostimogene grenadenorepvec (CG0070) plus Keytruda, as well as the Sunrise-1 trial of Johnson & Johnson’s gemcitabine formulation TAR-200 plus cetrelimab. The setback marks the latest disappointment for the controversial surgeon Patrick Soon-Shiong, who managed to sell Abraxis Bioscience to Celgene back in 2010, but who has had little luck since. Soon-Shiong is chairman and main shareholder of ImmunityBio, a venture formerly known as Nantkwest but now with less focus on NK cell therapies. Though the FDA’s complete response letter, citing manufacturing deficiencies and CMC problems, came two days ago, ImmunityBio only revealed it today, via an SEC filing, causing its stock to fall 56%. Even so ImmunityBio still carries a $1.2bn market cap, which seems amazing given its dire financial situation. The group has burned through $2.5bn of investor funds, and its balance sheet shows $91m of cash against $717m in debt owed to entities controlled by Soon-Shiong.

ImmunityBio balance sheet highlights ($m)

Note: *Nant entities, controlled by Patrick Soon-Shiong (Immunitybio's chairman & principal shareholder), include Nant Capital, Nantmobile & Nantcancerstemcell; on 9 May 2023 Nant Capital lent a further $30m through a promissory note with 8% interest. Source: SEC filings.