Sorrento Therapeutics has entered into a binding term sheet to create a joint venture (JV) with CHA Biotech Co. of South Korea to develop and commercialize proprietary Chimeric Antigen Receptor (CAR) modified cellular therapies based on CBT's Activated Killer Cell (AKC) technology and five of Sorrento's CARs for all disease conditions, including oncology and infectious diseases. The JV covers products on a global basis with the exception of the Greater Chinese market.

In addition, Sorrento will obtain an exclusive license to develop and commercialize CBT's novel investigator-initiated trial stage AKC technology in major territories, including the United States, Europe, and with a co-exclusive license in China. Both CBT and Sorrento will make contributions of $2 million to the JV. In addition, Sorrento will grant the JV an exclusive license to five CARs solely for combination with the AKC technology, while CBT will contribute its AKC technology.

CBT will initially own 51% of the JV while Sorrento will initially hold the remaining 49%. Sorrento, under a royalty bearing license, will also gain access to the AKC technology for use outside the JV alone or with any other Sorrento products.