Sorrento Therapeutics, Inc. · OTC:SRNE

Sorrento Therapeutics — Investor Presentation (August 2019)

35 slides from Sorrento Therapeutics's investor presentation, Aug 12, 2019

1. Slide 1: A Leading Immunotherapy and Non-Opioid Pain Management Company

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved A Leading Immunotherapy and Non - Opioid Pain Management Company August 2019 SRNE (NASDAQ)

2. Slide 2: Forward-Looking Statements and Non-GAAP Financial Information

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 2 Forward - Looking Statements and Non - GAAP Financial Information Certain statements contained in this presentation or in other documents of Sorrento Therapeutics, Inc . (the “Company” or “Sorrento”) and of any of its affiliates, along with ce

3. Slide 3: Investment Highlights

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Investment Highlights 3 Sorrento is a diversified biopharmaceutical company discovering, developing and commercializing differentiated medicines in areas of high unmet need with breakthrough growth potential ▪ Next - generation Immuno - Oncology

4. Slide 4: Sorrento's Business Model

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 4 Sorrento’s Business Model ▪ Mission to develop therapeutic approaches that extend and enhance cancer patients’ lives ▪ Innovate and develop high - value - potential non - opioid therapeutics and monetize through strategic transactions ▪ Unlock

5. Slide 5: G-MAB Platform: Turn-Key Discovery and Development Engine

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 5 Manufacturing Capabilities: • cGMP mAb facility (4,000 L) • Fill/Finish capabilities • Full analytical support Highly successful screening hit rate (100+ clinically relevant targets screened) Very high diversity (2.1 x 10 16 distinct antibody

6. Slide 6: Sorrento Therapeutics – Corporate Structure

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Sorrento Therapeutics – Corporate Structure 6 58% Ownership Approximately 25% Ownership SP - 102 Commercial - Stage Cell Therapy Joint Venture Immuno - Oncology Joint Venture SRNE (NASDAQ) ▪ Next - Gen Immuno - Oncology Platform : CD38 Immunothe

7. Slide 7: Multiple Potential Drivers of Future Value

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved ▪ Antibody - centric pipeline leverages Sorrento’s proprietary G - MAB™ library ▪ Anti - CD38 targeting I - O programs for multiple myeloma - Autologous CAR - T – Phase 1 data read - out in Q4 2019 / Q1 2020 - Allogeneic DAR - T – IND submission

8. Slide 8: Non-Opioid Pain Analgesics - Resiniferatoxin (RTX) Platform

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Non - Opioid Pain Analgesics - Resiniferatoxin (RTX) 8 Platform Program Pre - IND IND Phase 1 / 2 Pivotal NDA Upcoming Milestones Non - Opioid Pain Analgesics Knee Replacement Deferment (potential fast - track) Targeting registrational study upo

9. Slide 9: Non-Opioid Pain Analgesics – Scilex Pipeline

   © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Non - Opioid Pain Analgesics – Scilex Pipeline 9 Platform Program IND Phase 1 Phase 2 Phase3 Pivotal NDA Approved Upcoming Milestones Non - Opioid Pain Management ZTlido ® 1.8% (Postherpetic Neuralgia - PHN) Launched October 2018 SP - 103 (ZTlid

10. Slide 10: Immuno-Oncology (I-O) Pipeline – CAR-T/DAR-T, ADC & BsAb

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Immuno - Oncology (I - O) Pipeline – CAR - T/DAR - T, ADC & BsAb 10 Platform Program Pre - IND IND Phase 1 Pivotal BLA Upcoming Milestones Immuno - Oncology CEA CAR - T (Liver metastases in pancreatic cancer) Pivotal trial protocol submitted in

11. Slide 11: Partnered Pipeline – Therapeutic Antibodies

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Partnered Pipeline – Therapeutic Antibodies (Partnered Program with Sorrento’s Right in US, Europe and Japan) Platform Program Pre - IND IND Phase 1 Pivotal BLA Upcoming Milestones Antibody Therapeutics Anti - EGFR mAb (metastatic Colorectal Can

12. Slide 12: Sorrento's Pain Management Programs

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Sorrento’s Pain Management Programs 12

13. Slide 13: Resiniferatoxin (RTX): A Novel Analgesic Approach to Osteoarthritis

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 13 Phase 1b double - blinded, placebo controlled study to assess the safety and preliminary efficacy of intra - articular administration of resiniferatoxin or saline control (as placebo group) for the treatment of moderate to severe pain due to

14. Slide 14: RTX OA Knee Pain Phase 1b Trial Update: Safety Outcomes

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved RTX OA Knee Pain Phase 1b Trial Update Safety Outcomes (45 Patients. 37 RTX treated. 8 Control) Cohorts RTX Dose (ug) Subjects Progress Blinding Safety 1 5 ug 6 Complete Unblinded No DLTs 2 12.5 ug 6 Complete Unblinded No DLTs 3 20 ug 6 Complete

15. Slide 15: RTX OA Knee Pain Phase 1b Trial Update: Efficacy Outcomes

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Difference of treatment effect - dose groups relative to control (pooled placebo group) Mean WOMAC A1 Pain Score & Standard deviation 15 RTX OA Knee Pain Phase 1b Trial Update Efficacy Outcomes (All Dose Cohorts Relative to Control) Dose cohort

16. Slide 16: Efficacy Outcomes (Pivotal Dose Candidates Relative to Control)

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Difference of treatment effect (pivotal dose candidates) relative to control (pooled placebo) Patients with more than 50% reduction in reported pain scores 16 RTX OA Knee Pain Phase 1b Trial Update Efficacy Outcomes (Pivotal Dose Candidates Rela

17. Slide 17: Efficacy Outcomes (Some Patients Beyond Study End-Point D84)

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved RTX OA Knee Pain Phase 1b Trial Update Efficacy Outcomes (Some Patients Beyond Study End - Point D84) Patients with D168 extended follow - up WOMAC A1 Pain Score 17 Five patients were followed to D168 (protocol trial end - point at D84). These p

18. Slide 18: Getting Back to Normal Scilex

    Getting Back to Normal Scilex Corporate Presentation 1

19. Slide 19: Scilex Holding Company: Delivering Value Today and More in the Future

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Scilex Holding Company: Delivering Value Today and More in the Future 19 Key Recent Achievements March 22, 2019 Announced merger with Semnur Pharmaceuticals August 9, 2019 Announced strong ZTlido® sales growth after successful post - merger inte

20. Slide 20: Scilex – ZTlido (FDA approved)

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved US FDA APPROVAL – FEBRUARY 2018 COMMERCIAL LAUNCH – OCTOBER 2018 20 Scilex – ZTlido ® (FDA approved) Lidocaine Patch Market Overview >3 million prescriptions per year More than 120 million prescription lidocaine patches were sold in the US in 20

21. Slide 21: ZTlido: Head-to-Head Adhesion Study

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 21 1 Data from a 12 patient 12 - hour study Adhesion Scores Over Time (Lower Score Demonstrates Better Adhesion) The recommended scoring system for adhesion of transdermal patches are indicated as follows: 0 = ≥ 90% adhered (essentially no lift

22. Slide 22: SP-102: On-Track to be the First Steroid Formulation with FDA-Approved Label for Back Pain

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Well - tolerated. Key viscous excipient, long history of use including safety SP - 102: On - Track to be the First Steroid Formulation with an FDA - Approved Label to Treat Back Pain 22 Potent non - particulate steroid (injectable dexamethasone

23. Slide 23: Sorrento's Core Immuno-Oncology (I-O) Programs

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Sorrento’s Core Immuno - Oncology (I - O) Programs 23

24. Slide 24: Anti-CEA CAR-T Clinical Experience

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Before Infusion Post - Infusion Anti - CEA CAR - T Clinical Experience 24 Pre - enrollment history Liver metastases of pancreatic cancer Failed 3 lines of conventional chemotherapy and ablation Preliminary Results Complete resolution of liver me

25. Slide 25: Background on CD38 Target and anti-CD38 mAb STI-1

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 25 Background on CD38 Target and anti - CD38 mAb STI - 5171 Anti - CD38 mAb A2 Fully human antibody selected from GMAB library Both CD38A2 and Daratumumab have nanomolar affinities for recombinant CD38 protein Exhibits fast - on/fast - off bindi

26. Slide 26: CD38 Multi-Modality Franchise

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved CD38 Multi - Modality Franchise 26 Indication Program Pre - IND IND Phase 1 Pivotal NDA Upcoming Milestones Multiple Myeloma CD38 CAR - T Phase 1 data read - out in Q4 2019 / Q1 2020 CD38 ADC Projected IND submission in Q4 2019 CD38 DAR - T (all

27. Slide 27: STI-6129 ADC Exerts Strong Anti-tumor Activity in Myeloma Mouse Model

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved STI - 6129 ADC Exerts Strong Anti - tumor Activity in Myeloma Mouse Model 27

28. Slide 28: CD38-ADCs Exert Cytotoxicity Against Tumor Cells from Daratumumab-Resistant MM Patients

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved CD38 - ADCs Exert Cytotoxicity Against Tumor Cells from Daratumumab - Resistant MM Patients 28 Primary MM cells MACS separated and frozen (5x10 e6 cells) Thawed 6 patients CD138+ fractions 4 patient samples could be evaluated Dara samples cultur

29. Slide 29: From CAR to DAR

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved From CAR to DAR TM scFv Fab TM Chimeric Antigen Receptor (CAR) scFv - based Dimeric Antigen Receptor (DAR) Fab - based linker Hinge Disulfide bond 29

30. Slide 30: CD38 DAR-T Cells More Potent than CD38 CAR-T Cells at Lower Dose

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved At Lower Dose (4x10e6 Cells), CD38 DAR - T Cells are more Potent than CD38 CAR - T Cells 30

31. Slide 31: Comparison of DAR-T Cell and CAR-T Cell cGMP Manufacturing Processes

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Illustrative Comparison of DAR - T Cell and CAR - T Cell cGMP Manufacturing Processes Autologous CAR - T Cell Manufacturing Allogeneic DAR - T Cell Manufacturing 31

32. Slide 32: Evolution of the Platform: From Auto-CAR-T to Allo-DAR-T

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Evolution of the Platform: From Auto - CAR - T to Allo - DAR - T Targeting CD38 Clinical Proof - of - Concept CD38 CAR - T Potential Product KOKI CD38 DAR - T Advantages of DAR - T over CAR - T Chimeric Antigen Receptor (CAR) Dimeric Antigen Rec

33. Slide 33: In-House CAR-T / DAR-T cGMP Manufacturing Capabilities

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 33 In - House CAR - T / DAR - T cGMP Manufacturing Capabilities Shorter development times Hundreds of patient - doses per year currently; Next - gen off - the - shelf technology can potentially extend to tens of thousands of patient - doses per

34. Slide 34: Multiple Upcoming Milestones

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved Multiple Upcoming Milestones 34 Expected Timing Program Milestone August 2019 CEA CAR - T (liver metastases) – Protocol submitted for pivotal Phase 2 trial TBD RTX (osteoarthritis pain) – Initiate two pivotal trials 1H 2020 SP - 102 (lumbar radi

35. Slide 35: Seasoned Executive Team

    © 2019 Sorrento Therapeutics, Inc. All Rights Reserved 35 Seasoned Executive Team Henry Ji, Ph.D. Chairman, President and Chief Executive Officer Deborah Telman, J.D. SVP and General Counsel Jiong Shao, M.B.A. EVP and Chief Financial Officer Gunnar F. Kaufmann, Ph.D. SVP of Immunotherapy & Head of R

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