The coronavirus pandemic came as a huge shock to the markets at large but there was one category of stocks that managed to buck the trend. Those were the stocks of companies that were working on developing a coronavirus vaccine. One such stock is Sorrento Therapeutics Inc (NASDAQ:SRNE).
Back on May 15, the company made a major announcement with regards to the coronavirus vaccine, and soon enough, the stock soared by 100%. Hence, if more positive news does come along, then it is almost certainly has a positive effect on the Sorrento stock. Here is a look at what’s been happening with Sorrento.
The company had been working on a vaccine for COVID 19 for many months, and eventually, Sorrento revealed that its product STI 1499. At the time, the company said that the product managed to neutralize the virus effectively. However, the performance in a testing environment is no guarantee that a product is going to be successful.
The company’s CEO, Henry Ji, made outlandish claims about the product, and that landed Sorrento in legal trouble. The company was slapped with a class-action lawsuit by investors who said that Sorrento had made false claims.
However, on June 6, the company announced that it had developed another possible coronavirus cure named Covidtrap or STI 4398. Although the company said that the preclinical trials were successful, it has not yet started the Phase 1 trials. Currently, not a lot is going on with the company considering the fact that it only has one product, Ztilido, on the market.
In Q1 2020, it generated revenues of $7.7 million, as opposed to $6.1 million in the prior-year period. It should be kept in mind that the company’s shingles pain product Ztilido has not been a particularly successful product thus far either.
Despite the noise regarding the coronavirus related products, none of those are anywhere close to being launched. In light of such a situation, investors could do well to stay away from the Sorrento stock for now. Sign up below for fast-moving stock alerts and breakout stock picks.