Sorrento Therapeutics Inc (SRNE)

[dia76ca]

Someone's done a nice analysis of Gomez interview.
"Summary of Dr. Henry Ji's presentation at the 5th Intl. Vatican Conference

This was Dr. Ji's best presentation to date. He was easy to understand, straight to the point, promoted Sorrento's products, painted a very positive picture for the near future and highlighted the best advantages of the pipeline. Here is the summary point by point:

1. Sorrento is presented as the leader of a breakthrough technology defined as "a revolution in pharmacologic chemistry". The most advanced use of this technology is considered "the next blockbuster therapy". Sorrento is identified as the reference for this biotechnology. Encouraging and promising.

2. This technology is a solution for illnesses that up until now were untreatable. Its potential revenue is off the charts.

3. Off the bat, Dr. Ji mentions Covi-stix. Perhaps the most important news from this presentation: the EUA is alive and well. Dr. Ji did an excellent job applying pressure on the FDA, making clear that an approval would bring worldwide benefits. This throws out of the window all the theories about the EUA having been rejected, etc. If Dr. Ji wasn’t confident about the outcome of the EUA approval, he wouldn't mention. Excellent news.

4. Sorrento has a solution for each phase of covid, and each solution is the most effective for that phase. For patients with symptoms but clean lungs, Sorrento’s treatment is highly effective, less invasive and shorter, so much more comfortable for the patient. I thought Dr. Ji was excellent at pointing out these advantages. Good marketing.

5. Major fact: Sorrento received a government defense production act grant (a dpa grant) for promoting this treatment that tackles covid (as well as other health issues, see below). This grant basically means the gov’t is willing to help the company shorten the process of approval so make the product available asap. See below revenue implications.

6. With it's high-tech solutions, Sorrento can tackle and control any covid variant, whether current or one that will develop in the future. Again, Dr. Ji highlighted the good news that the public wants to hear.

7. Sorrento has the ability to treat covid even for ICU patients needing a ventilator. Dr. Ji promotes the treatment with a lot of confidence and clarifies that not only are the results excellent, but also immediate. A patient goes from the ICU to being released within 24 hours (!!). That's definitely Sorrento showing some muscle. Very Impressive.

8. The host asks about Sorrento's ability to apply its technology beyond covid. This allowed Dr. Ji to go off topic (he was invited to talk about covid) and he does that very well. He says: we have developed a technology that allows the patient to create antibodies against the virus that is attacking him. It's clear that this technology can be applied to a very vast array of patients and illnesses. Huge revenue implications.
Dr. Ji here stresses that this type of treatment will allow constant and immediate new solutions for multiple, specific illnesses, reason for which the government is giving Sorrento the DPA grant.

9. A side dish of more good news: besides the enrollment of 140 patients in Brazil and the USA, Sorrento will also start a big trial in Mexico.

10. Dr Ji goes into numbers, a bold move. He says without filters: we have a technology that can generate over 60 billion dollars in revenue, we have a grant to make it available asap, this will be a game-changer in the entire industry. You have to be very confident to say that. On that sentence alone, really, if this was a stock that behaves bullishly (which sadly it’s not), the price of Sorrento would need to double.

11. Question: considering Sorrento’s pipeline is so big, and there is only so much money and personnel to go around, what do you prioritize? Awesome answer: Hey, FDA give us the EUA ! I loved that, as mentioned before. Then he says: many of these products are fast track products that do not need lengthy approval processes. They can all be approved this year and create more revenue. (So 1st part of his answer: we’re on the verge of creating revenue, the money to develop the entire pipeline . The 2nd part of his answer is also reassuring: we already have money, our financial situation is solid, we can develop several programs simultaneously. Great news for any investor.

Bottom line: excellent presentation, lots of good news, EUA still very much alive, CEO very confident that he has a massive billion dollar company in the making. It hurts watching Sorrento’s price go down 3-5 percent three times a week, it does. But this ticker is going three digits way earlier than people imagine. Whomever holds will be rewarded and then some!"