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Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN), a micro-cap pharmaceutical company with a market capitalization of $3.89 million, announced significant changes in its leadership following the passing of its President, CEO, and Chairman, Pankaj Mohan, on March 31, 2025. According to InvestingPro analysis, the company appears undervalued despite facing significant challenges, with the stock trading near its 52-week low of $1.22. The company’s Board of Directors has appointed Raghu Rao as the interim Chief Executive Officer and promoted Stephen McAndrew, Ph.D., to President and Chief Business Officer. The leadership transition comes at a challenging time, with InvestingPro data showing the stock has declined over 91% in the past year, though analysts project revenue growth of nearly 53% for fiscal year 2025.
Raghu Rao, 62, has been a member of the Sonnet Board since November 2019 and brings a wealth of entrepreneurial and advisory experience to his new role. With a background in founding and scaling high-technology companies, Rao’s expertise spans across strategy and execution of high-profile projects, including government initiatives. He holds an MBA in Finance from George Washington University, an M.S. in Computer Science from Virginia Tech, and a B.Tech. in Electrical Engineering from the Indian Institute of Technology Madras.
Stephen McAndrew, age 71, has been with Sonnet since the company’s merger in 2020 and previously served as Senior Vice President of Business Development. His experience includes various business development roles in the biopharmaceutical industry, as well as serving at Bristol-Myers Squibb Company (NYSE:BMY). Dr. McAndrew’s educational credentials include a Ph.D. in Molecular and Cellular Biology from Ohio University.
The company may negotiate a formal employment agreement with Mr. Rao at a later date. As per an employment agreement dated February 12, 2025, Dr. McAndrew’s compensation includes an annual gross base salary of $330,000 and eligibility for a performance-based cash bonus of up to 35% of the base salary.
The appointments come at a critical time for Sonnet BioTherapeutics as it continues to navigate the pharmaceutical landscape. While the company maintains a healthy current ratio of 2.15 and holds more cash than debt on its balance sheet, InvestingPro analysis indicates an overall weak financial health score of 1.7. This leadership transition is a pivotal step for the company as it upholds its commitment to advancing its therapeutic programs and strategic initiatives. Discover 10 additional key insights about SONN with an InvestingPro subscription.
This report is based on a press release statement from Sonnet BioTherapeutics Holdings, Inc. and provides a factual summary of the company’s recent executive changes without any speculative content.
In other recent news, Sonnet BioTherapeutics Holdings, Inc. has announced promising safety data from its ongoing Phase 1 SB1010 clinical trial for SON-1010, an immunotherapeutic drug used in combination with trabectedin for treating advanced leiomyosarcoma and liposarcoma. The Safety Review Committee found no unexpected toxicities in the first seven patients treated at the maximum tolerated dose. Additionally, Sonnet received a Notice of Allowance from the USPTO for a new patent related to its IL-18 variant protein, IL-18BPR, which could enhance cancer treatment efficacy. In another development, Sonnet is advancing its Antibody Drug Conjugate (ADC) platform, focusing on its potential to address technical challenges and enhance tumor penetration. The company also appointed Raghu Rao as Interim CEO following the unexpected death of founder and CEO Pankaj Mohan, Ph.D. Stephen McAndrew, Ph.D., has been promoted to President and Chief Business Officer, furthering Sonnet’s business development and licensing strategies. These recent developments highlight Sonnet’s ongoing efforts in drug development and strategic leadership changes.
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