Sorrento Therapeutics Inc (SRNE)

[Scandle34]

Full court pump...

First, it is an antibody cocktail, but they have identified ONE antibody.
Second, a 50% probability of success on a product might apply going into human trials, but not yet.


Share price target of implies a near five-fold gain on expected successful development of antibody cocktail
Shares of Sorrento Therapeutics Inc. rallied Tuesday, after a Wall Street analyst suggested the biopharmaceutical company was a good bet to successfully develop an "antibody cocktail" that could shield people from the COVID-19 virus.
The stock(SRNE) rose 3.0% in active afternoon trading Tuesday. Trading volume was 52.0 million shares, which exceeded the full-day average of about 41.1 million shares.
The gain follows a hectic week of trading, that followed up the 158% blast off on massive volume of 507.6 million shares on May 15 after the company provided an upbeat assessment (http://www.marketwatch.com/story/sorrento- therapeutics-stock-soars-on-massive-volume-after-upbeat-report-on-covid-19-antibody-experiment-2020-05-15) of the results of a preclinical experiment of its COVID-19 virus antibody, STI-1499.
The San Diego -based company said that STI-1499 demonstrated complete inhibition of SARS-CoV-2 virus infection in an in vitro virus infection experiment at a "very low antibody concentration." Sorrento reiterated that it aims to generate an "antibody cocktail" product (http://www.marketwatch.com/story/sorrentos-stock-jumps-on-antibody-plans-with-mount-sinai- health-system-2020-05-08) that could act as a "protective shield" against coronavirus infection.
Analyst Jason Kolbert at Dawson James Securities initiated coverage of Sorrento with a buy rating, which for Dawson James means the stock is expected to produce a total return of at least 20% over the next 12 to 18 months.
But Kolbert expects a lot more than that, as he set a stock price target of $24 .
He suggested the stock is a good bet for investors, as he assumes the company will successfully develop the "COVI- SHIELD" antibody cocktail that it aims to produce.
"We apply a probability of success of just 50%, but given the size of the indication, the valuation potential for COVID alone is large," Kolbert wrote in a note to clients.
His view also includes the company's assertion that it can produce up to 200,000 does a month, with management saying it believes it can produce tens of millions of doses in a short period.
The company has said it has determined that STI-1499 will likely be the first antibody in the COVI-SHIELD cocktail that it is developing, and could also be developed as a stand-alone therapy--COVI-GUARD-- given the high potency it has exhibited.
Sorrento has said it plans to request priority evaluation and accelerated review from regulators.
The stock has now run up 55% year to date, while the iShares Nasdaq Biotechnology exchange-traded fund(IBB) has gained 10.4% and the S&P 500 index has lost 6.8%.
- Tomi Kilgore ; 415-439-6400; [e-mail]

(END) Dow Jones Newswires
05-26-20 1437ET
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