Shares of Sorrento Therapeutics spiked 8% in Wednesday’s pre-market trading after the drugmaker filed for emergency use of its COVID-19 test with the US Food and Drug Administration (FDA).
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Specifically, Sorrento (SRNE) announced that the FDA application is for the emergency use authorization (EUA) of its COVI-STIX rapid diagnostic test for the detection of the SARS-CoV-2 virus nucleocapsid antigen in nasal samples of patients.
According to the latest testing results, the COVI-STIX generates results within 15 minutes. A positive detection can be seen within two minutes for patient samples with high viral load. Going forward, Sorrento is evaluating the potential for COVI-STIX using a saliva sample as well.
The COVI-STIX test requires mixing the sample with a buffer and applying it through the cassette, which displays a black line if the viral antigen is detected. This technology is suited for rapid laboratory, point-of-care testing or at-home use, the company said on its website.
Sorrento is a clinical stage, antibody-centric, biopharmaceutical company developing new therapies to treat cancers. In addition, the company is developing potential antiviral therapies and vaccines against coronaviruses, including COVI-GUARD and COVI-AMG, as well as diagnostic tests, including COVI-TRACK and COVI-TRACE.
On a year-to-date basis, Sorrento shares have had a stellar journey, soaring 114% sparked by investor hopes for the development of its COVID-19 therapies and tests, including its COVI-SHIELD, an antibody cocktail treatment.
Sorrento has received one recent Buy rating from Dawson James analyst Jason Kolbert, who published a price target of $21 (191% upside potential).
“We assume that the company successfully develops COVI-SHIELD (and non-opioid Pain Medication, RTX),” Kolbert wrote in a note to investors. “We apply a probability of success of just 50%, but given the size of the indication, the valuation potential for COVID alone is significant. For Sorrento, we additionally apply a 30% discount rate.” (See SRNE stock analysis on TipRanks).
Related News:
Pfizer-BioNTech Covid-19 Vaccine Gets Cleared For Use In Europe
Moderna’s Covid-19 Vaccine Wins FDA Emergency Use Approval
Columbia Care Agrees to Buy Green Leaf Medical for $240M