Today, investors in Sorrento Therapeutics (NASDAQ:SRNE) are seeing a lot of red. Today’s double-digit decline in SRNE stock suggests investors are taking another look at this early stage vaccine player.
As we reported earlier, vaccine stocks have taken a big hit today. Sorrento is one such company in the Covid-19 vaccine race, currently running clinical trials for its candidate. However, given the rapid acceleration in vaccinations among eligible Americans, the window of opportunity for Sorrento has been closing for some time.
Additionally, today’s announcement of some rather bullish results for an oral Covid-19 option have hit vaccine stocks hard. Given the outlook for early stage vaccine stocks, it’s perhaps unsurprising to see SRNE stock down 11% at the time of writing.
However, what’s intriguing about Sorrento is the company’s more diverse product line relative to other vaccine stocks. Let’s dive into one reason why investors may be enticed to consider Sorrento on this dip.
SRNE Stock Dips, Despite Parkinson’s Patent
Indiscriminate selling in the market is typical. When a piece of news affecting a broader group of stocks comes out, investors will often find that companies with other catalysts get sold off regardless of their company-specific news.
Indeed, this appears to be the case with SRNE stock today.
Yesterday, it was announced that Sorrento filed an application for a patent for its Parkinson’s treatment Resiniferatoxin. This application is related to the methods for treating Parkinson’s disease by administering this drug.
Indeed, Sorrento’s portfolio of other drugs under development could provide significant upside, regardless of how the company’s MRNA-focused Covid-19 vaccine works out. To be sure, a significant chunk of Sorrento’s valuation is tied to this vaccine. Accordingly, some of today’s drop is surely due to this recent news.
However, investors looking at any particular stock need to consider all the components of a given company’s business model when making buying or selling decisions. Accordingly, SRNE stock could be one to keep on the radar right now.
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.