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Friday, September 29, 2023

Sorrento Is Firing on All Cylinders

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Sorrento Therapeutics (SRNE) is a company with its foot on the gas, and hardly a week goes by without new developments. This week is no different.

On Tuesday, the biotech announced a multi-year Cooperative Research and Development Agreement (CRADA) with the U.S. Naval Medical Research Unit (NAMRU-3).

The partnership’s aim is to conduct infectious disease research that assists the Department of Defense (DoD), informs host nation partners’ public health policy, and improves the U.S. Armed Forces medical readiness in areas where NAMRU-3 is responsible.

Based on the agreement, Sorrento will bring to the table its technical knowhow and give access to its portfolio of products intended to fight the coronavirus and various threats surfacing due to variants of concern, while NAMRU-3 will oversee surveillance and clinical validation research.

It’s not hard to see why the unit chose to work with Sorrento, as the company has a pipeline bulging with prospective treatments/diagnostics addressing the coronavirus.

The collaboration’s initial target will be to improve preparation against infectious diseases via observation and clinical diagnostic validation activities for Sorrento’s diagnostic tests COVISTIX and COVITRACK and neutralizing antibody treatments for coronavirus patients COVIDROPS and COVI-AMG.

In other Covid-related news, Sorrento also announced that the enrollment for the Brazilian Phase 2 clinical study of abivertinib in hospitalized COVID-19 patients has been completed. This follows on from the recently concluded enrollment for the US Phase 2 testing. Top-line data from both trials should see the light of day in 3Q21.

Furthermore, the Mexican regulatory agency, COFEPRIS, has officially authorized the emergency use of COVISTIX. As a result, the company plans to establish a local “Sorrento Mexico Ltd” subsidiary to manage commercial operations in Mexico.

Long time Sorrento fan, H.C. Wainwright’s Ram Selvaraju notes the company’s “multiple advances on the Covid-19 front.” The analyst has a Buy rating for the shares and a $30 price target, indicating huge potential upside of 200%. Interestingly, however, Selvaraju reminds investors that this assessment “does not factor in any contribution from Sorrento’s COVID-19 therapeutics pipeline, which could—if successfully developed and launched—drive meaningful upside to our forecasts.” (To watch Selvaraju’s track record, click here)

2 other analysts are keeping a tab on the busy biotech’s progress, and both are backing its success. The additional Buys add up to a Strong Buy consensus rating, while the $25 price target suggests gains of 150% could be in the cards over the next 12 months. (See SRNE stock analysis on TipRanks)

To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Sorrento Is Firing on All Cylinders appeared first on TipRanks Financial Blog.

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