The award for today’s most impressive mover has to go to Sonnet BioTherapeutics (NASDAQ:SONN). Currently, SONN stock has surged more than 120% on an intraday move that has seen this stock erase more than a month of losses. This move comes as the company announced a collaboration agreement with Janssen Biotech.

This agreement is aimed at advancing the company’s in vitro and in vivo drugs, in combination with specific “Janssen proprietary cell therapy assets.” Interestingly, this deal with Janssen Biotech is actually a deal with a subsidiary of Pharma giant Johnson & Johnson (NYSE:JNJ). Thus, investors appear to like the clout this partnership provides clinical-stage Sonnet.

As an early-stage biotech stock, Sonnet has been hit hard by a general de-risking of investor portfolios this year. Despite being down more than 50% on a year-to-date basis alone, SONN stock appears to have found some investor support. Indeed, today’s outsized move on heavy volume is an indication this is a stock that’s garnering a tremendous amount of interest as a speculative trade right now.

Let’s dive into whether this partnership could bode well for making Sonnet a compelling opportunity right now.

Is Now the Time to Buy SONN Stock?

Any preclinical-stage biotech stock is inherently higher risk, making such stocks among the first to see downdrafts during difficult markets. Such has been the case for Sonnet, which has followed the overall biotech market lower this year.

That said, today’s rally does signal investors may be intrigued to pick up beaten-down shares at these levels. A partnership of this scale and quality, with a company like JNJ, is a big deal. Accordingly, should the company’s preclinical models portend well for its drug pipeline, this is a stock with some serious upside potential.

Now, Sonnet is still a company that trades at a market capitalization of just $11 million (after today’s impressive move). Thus, this is certainly a stock most would put in the high-risk, high-upside category. That said, for speculators looking for an area of the market to throw a few dollars at, this is a stock that’s starting to look a lot more interesting right now.

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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.