Sorrento Therapeutics (NASDAQ: SRNE) is answerable for growing most cancers therapies, COVID-19 therapies, and non-opiate ache therapies-all legitimate accomplishments. Nevertheless, the factor that has caught analysts’ consideration is the corporate’s COVISTIX product, which may detect the presence of the virus’ antibodies inside quarter-hour. Not solely that, it could possibly detect the assorted variants of the an infection, together with the extremely contagious Omicron variant, and it could possibly do it higher than another check out there. Sorrento has already launched a manufacturing unit in San Diego to ramp up manufacturing. Will this product lastly assist the corporate attain profitability and is Sorrento Therapeutics funding proper now?
The bull case for Sorrento Therapeutics
If the coronavirus proved one factor it’s this: it’s going to preserve mutating till it has fully run its course and with solely 60% of the U.S. inhabitants vaccinated, the time for testing has by no means been extra important. It seems that the Omicron variant is troublesome to detect and plenty of checks report a false unfavourable which may trigger fairly the nightmare situation with folks strolling round considering they’re not contaminated. This isn’t the case for Sorrento’s COVISTIX, which was discovered to be more practical in detecting Omicron than another check available on the market.
Realizing that the corporate had a house run on its palms, it rapidly began setting up a manufacturing unit in San Diego that can be able to producing 6 million check kits per 30 days. Sorrento additionally signed a deal to provide the Mexican market with 10 million check kits. That is just the start as the corporate is planning on increasing manufacturing for as much as 100 million check kits per 30 days this 12 months.
Apart from COVID testing, the corporate additionally owns the world’s largest human antibody library on the planet in its G-MAB™ product, which holds greater than 10 quadrillion distinct sequences utilized in RNA transcription to amplify therapy. Additionally, the corporate has merchandise that concentrate on most cancers and arthritis ache with out the usage of debilitating opiates. All of those merchandise are in scientific trials and only one success can spell monetary windfall for Sorrento.
The bear case for Sorrento Therapeutics
Sorrento isn’t but worthwhile and in accordance with the corporate’s final quarterly report (Q3 2021), revenues are up solely a paltry 2.6 % year-over-year (YoY) whereas web losses are up almost 40% in the identical time interval. Whereas awaiting approval for any of its merchandise to offset losses, the corporate will little doubt challenge shares and dilute investor worth.
So, is Sorrento Therapeutics funding?
I’ve at all times been a fan of innovation and I really feel the inventory is affordable sufficient and has sufficient potential (with over 60 merchandise in its pipeline) to purchase and maintain long run.
Quickfire spherical:
1. The place is Sorrento Therapeutics’ headquarters and who’s its CEO?
San Diego; co-founder Henry Ji
2. When did Sorrento Therapeutics go public?
October 25, 2013
3. What proportion of the world inhabitants is vaccinated in opposition to COVID-19?
50.3%
