Sorrento Therapeutics, Inc. announced that it has entered into a binding term sheet to create a joint venture with CHA Biotech Co., LTD, to develop and commercialize proprietary Chimeric Antigen Receptor modified cellular therapies based on CBT's Activated Killer Cell 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. The AKC technology utilizes proprietary methodologies for the generation of highly activated, patient-derived Natural Killer (NK) Cells from 60 mL (60 cc or less than 3 fl. oz.) of peripheral blood. The expansion and activation process takes less than 3 weeks and yields sufficient cells for several treatment cycles. Notably, the resulting AKC product can be cryopreserved as efficient freeze-thaw protocols have been established. Thus far, more than 1,000 AKC batches have been produced and used in ongoing clinical studies in Japan. The treatment protocol does not require lympho-depleting preconditioning of the patients prior to administration of the AKC. 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.