Sorrento Therapeutics (NASDAQ:SRNE) is a stock that’s on fire today. Investors in SRNE stock have seen gains of 6% at the time of writing on heavy volume. More than double the average daily volume of shares have already traded hands.
Today’s move is a continuation of strong momentum over the past month for SRNE stock. Since May, shares of Sorrento are up nearly 50%, as investors continue to bet big on biotech names. Additionally, as a company with a short volume ratio of 18%, SRNE stock falls into the short-squeeze discussion that has taken various meme stocks parabolic. Indeed, Sorrento isn’t a stock that many would classify as a meme play right now. However, its short interest suggests retail investors may be jumping aboard prematurely.
That said, Sorrento is a company with some news of its own today. Let’s dive into what’s driving SRNE stock this trading session.
SRNE Stock Higher on Announced Collaboration
At the end of last week, Sorrento announced it has entered into a research collaboration with the Mayo Clinic. As one of the most prestigious research institutions in the U.S., this is a big deal. Accordingly, investors appear to view this news as validation of Sorrento’s drug pipeline.
The research agreement centers on conducting human clinical trials for Sorrento’s Sofusa drug. Sofusa is “a drug delivery platform that delivers biologic therapies through the skin and directly into the lymphatic system, potentially improving the efficacy and safety of immuno-oncology therapies.”
The hope is that this therapeutic option will result in positive outcomes for those suffering with metastatic melanoma.
This news comes on the heels of another key announcement made on Friday. Sorrento previously announced it had received authorization from U.K. regulatory authorities to conduct Phase 2 studies for its COVI-drops. These intranasal drops provide antibodies active against the Covid-19 virus. These drops have shown efficacy against the alpha and delta viral variants, which are highly prevalent in Europe and North America.
The Phase 2 efficacy trials are being viewed as a huge positive for SRNE stock. Investors have two key catalysts to focus on with this stock right now, and are jumping aboard accordingly.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.