Biotech stocks are all the rage these days, as the medical community works around the clock to find a vaccine for the novel coronavirus. One of the hottest names out there today is Sorrento Therapeutics (NASDAQ:SRNE) stock.
Sorrento uses immuno-oncology drugs and a proprietary device called Sofusa to deliver antibodies to the lymphatic system. Those antibodies “train” immune cells to fight cancer. It’s a fascinating technology.
In September, the company took center stage in a big way when it announced that it received FDA approval for a phase 1 clinical trial for its Covi-Guard antibody testing for Covid-19. It hopes to get emergency-use authorization for the test by late this year or early next year.
Not surprisingly, the announcement sent SRNE stock rallying higher, and I think it has even more room to run. That’s why I included Sorrento in my recent list of top biotech stocks to buy.
But Sorrento’s worth a closer look. Let’s do that now.
SRNE Stock at a Glance
Based in California, Sorrento was founded more than a decade ago to focus on cancer treatments, pain control and autoimmune diseases. Like many other biotech companies, the company expanded its research into Covid-19 treatments this year.
Sorrento has a variety of Covid-19 testing programs, including a diagnostic test and an antibody test, both of which it is seeking emergency use authorization for by the Food & Drug Administration.
In addition, it has a vaccine candidate in preclinical trials, and four other Covid-19 products in various stages of research. One of those, abivertinib, is in Phase 2 trials after Sorrento got approval from the FDA in July to start testing hospitalized Covid-19 patients.
The drug has already been tested on 600 cancer patients in China to treat cytokine storm, which is a condition when patients’ immune systems go out of control and attack the patients’ bodies.
The Latest Developments
Even more recently, Sorrento announced that it has gotten encouraging preclinical data for two of its experimental Covid-19 antibody therapies, STI-1499 and STI-2020. According to a release from the company, “STI-1499 nAb has been cleared by the FDA for a Phase 1 clinical trial in hospitalized COVID-19 patients. STI-2020 is an affinity-matured version of the COVI-GUARD nAb and has demonstrated a greater than 50-fold increase in potency in in vitro experiments.”
Dr. Henry Ji, CEO and chairman of Sorrento, said the company has been testing the drugs on hamsters.
“We believe that the results for STI-1499 and STI-2020 are truly remarkable. Based on the preclinical testing we have conducted to date, STI-2020 is our most promising SARS-CoV-2 antibody so far. … STI-1499 has been cleared by the FDA for a Phase 1 clinical trial in hospitalized COVID-19 patients. STI-2020 has the potential to be utilized for both early and late therapeutic interventions, as well as for prophylaxis, with the potential of having a low efficacious dose, which could enable efficient manufacturing and ultimately result in higher affordability for patients.”
Obviously, Sorrento has a long way to go before they can begin testing humans or bring a treatment to market. But the announcement and continued progress the company is making in Covid-19 research is a solid tailwind for Sorrento.
The Bottom Line
SRNE stock has been volatile this year, sinking to less than $2 per share and rising to around $19. Currently at more than $11 per share, Sorrento stock is up 230% on the year.
So, if you invest in Sorrento and other biotech companies, you have to be ready for a wild ride and able to stomach the ups and downs.
Sorrento has plenty of competition in Covid-19 research. But its multi-pronged approach and its success thus far makes it an interesting company for investors looking to expand their portfolios beyond the obvious names.
SRNE stock has an “A” rating in my Portfolio Grader and carries a strong buy recommendation.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
