Sorrento (NASDAQ: SRNE) claims to have a COVID-19 treatment that offers 100% protection. However, it seems most biotechs are reenacting the boy who cried wolf. Making investors question the the truth behind Sorrento’s statment. Especially, as every week a new biotech enters the headlines for COVID-19 vaccine developments. In all honesty a single viable vaccine, let alone multiple, is unlikely. Testing and treatments is where is the consistent share price growth resides. Thus, when a COVID-19 treatment posts an astonishing survival rate no wonder the stock explodes. Bringing us to today’s COVID-19 biotech, Sorrento Therapeutics.
Why is SRNE up 158% today?
Sorrento Therapeutics (NASDAQ: SRNE) holds a COVID-19 treatment (STI -1499) that could offer 100% protection. After the biotech released the announcement, investors locked onto the stock just like a satellite fixates on a GPS. Ultimately, triggering a volcanic rally as SRNE erupted by 158%.
Sorrento’s treatment essentially prevents the virus from multiplying to other cells. The treatment wraps around your antibodies to create an unbreakable shield. Ultimately, starving the virus until it eventually dies off in four days. The next is step is obtaining FDA approval. Once the regulatory authorities give the green light, then Sorrento would conduct animals followed by human trials on COVID-19 patients.
Moreover, Sorrento expects the treatment (STI-1499) to be available for patients by July. A time frame which is one year ahead of the vaccine timeline. Thus, the significant possible survival rate coupled with a short-time frame caused Sorrento to soar by 158% today.
Is SRNE a one trick biotech?
Sorrento is a biopharmaceutical that strives to cure cancer diseases through antibody-centric therapies. The biotech was born in 2006. However, SRNE’s product pipeline acted like a snail in the years following inception. Slow clinical development in cancer drugs is common within the industry. Hence a partial reason for why we do not have a cure for cancer yet.
Nonetheless, Sorrento holds an expansive product pipeline with one in stage 3 and one drug ready for NDA submission. However, Sorrento has not produced a viable drug yet. Begging the question that can a successful COVID-19 treatment expedite the remaining drugs through the clinical timeline?
Is Sorrento worth the investment?
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
You might have your finger hovering over a buy order on Sorrento. If you do or you already invested, you want to read what I have to say next.
Don’t look now but $SRNE is saying they have a CURE for Covid. Not a vaccine. A cure.
"We want to emphasize there is a cure. There is a solution that works 100 percent," Dr. Henry Ji, founder and CEO of Sorrento Therapeutics, told Fox News https://t.co/D4UX3GCtH1
— Quoth the Raven (@QTRResearch) May 15, 2020
SRNE’s claim of a 100% protection is here say, the possibility of it becoming a reality means Sorrento’s current share price is a bargain (opinion not advice). Because if the non-invasive treatment is successful worldwide economies can recover without fear. Ultimately, leading to the government pumping an unimaginable amount of money into Sorrento, and causing an extreme bullish rise. Personally, I am looking to see if the biotech can stay above the $5.50 mark. Because a $5.50 resistance level would indicate investor confidence in the biotech and not a another pump and dump.
Also, the FDA has not approved the treatment. On top of that, SRNE has not even proved the efficacy, safety, and survival rate of STI-1499. Thus, the speculation of success is unsettling. All in all, investing in Sorrento captures the essence of the high-risk high-reward strategy.
The biotech world is blowing up right now. You do not want to miss out on these promising COVID-19 stocks:
- Novavax (NASSDAQ:NVAX) up 125% in a month.
- Moderna Inc (NASDAQ: MRNA) up 88% in a month.
- Quidel Corp (NASDAQ: QDEL) up 80% in a month.
- Mesoblast (ASX:MSB, NASDAQ:MESO) up 60% in a month.
- Pluristem (NASDAQ: PSTI) up in a month 10% in a month.
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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Patrick McLoughlin, Senior Manager of Youth Investment Group.