If COVID-19 Antibody ‘Cocktails’ Become Popular, Sorrento Stock Could Double, Says Analyst, , on October 6, 2020 at 4:04 pm

By
On October 6, 2020
Tags:

Once a specialist in oncology drugs and pain management, Sorrento Therapeutics (SRNE) has pivoted to attack COVID-19 head-on in 2020, offering up a smorgasbord of tests to detect the novel coronavirus, vaccines to prevent it, and therapies to combat it. As the President’s illness illustrates, the coronavirus contagion is still very much a threat — and no one is safe.With this in mind, Dawson James analyst Jason Kolbert released a note focusing in on the President’s doctors’ use of polyclonal “cocktails” of antibodies to fight the virus, and what that might mean for Sorrento Therapeutics — whose treatments haven’t been administered to the President (that we know of), but might soon become available to other patients in need.Sorrento is gearing up to hold an “R&D Day” event on October 13, reports Kolbert, at which the company will discuss its “comprehensive multi-modal approach to COVID-19” and the progress it has made on its various Covid-fighting endeavors. Two of Sorrento’s projects in particular interest Kolbert, the STI-1499 (which Sorrento has branded “COVI-GUARD”) and STI-2020 antibodies.As the analyst explains, “both STI-1499 and STI-2020 demonstrated protective activities against SARS-CoV-2 infection in Syrian golden hamsters.”That’s a curious statement to make, of course, and if it suggests to you that Sorrento isn’t particularly far along in development of this therapy — you’re right. In fact, Kolbert admits that STI-1499 — which the analyst considers Sorrento’s “lead candidate” as a coronavirus therapy — is only in Phase 1 clinical trials at this point. (No mention of how far along STI-2020 might be).That being said, the analyst notes that a 2,000 micrograms dose of STI-1499 “reduced virus load below the detection limit in 60% of animals tested” — and cut the viral load by at least 10x in the remaining 40%. STI-2020, meanwhile, showed efficacy at just 500 micrograms, reducing evidence of the virus to undetectable levels “in 100% of animals tested.”Kolbert muses that, should the two antibodies be mixed into a “cocktail,” the likes of the Regeneron cocktail that was administered to President Trump, “the product could remain effective even if virus mutations occur,” wiping out a patient’s infection before it has a chance to mutate and survive.Indeed, says Kolbert, Sorrento is already working on such a cocktail that it dubs “COVI-SHIELD,” and the analyst assumes that the company will be successful in developing this. Still, as a valuation exercise, he assigns the cocktail only a 50% chance of success (success meaning, in this case both that the cocktail works, and survives the phased process of FDA approval and is ultimately approved). Kolbert believes that this could happen “rapidly,” and argues that over and above Sorrento’s core activities in oncology and pain management, COVID treatments therefore offer a “significant … valuation potential” for the stock.How much “potential” are we talking here? Working the numbers, Kolbert arrives at the conclusion that Sorrento stock could be worth as much as $21 a share, or roughly twice what the shares cost today. Accordingly, he rates Sorrento stock a “buy.” (To watch Kolbert’s track record, click here)It has been relatively quiet when it comes to other analyst activity. In the last three months, only 2 analysts have issued ratings. However, as they were both Buys, the word on the Street is that SRNE is a Moderate Buy. Based on the $25.50 average price target, shares could climb 137% higher in the next twelve months. (See SRNE stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

If COVID-19 Antibody ‘Cocktails’ Become Popular, Sorrento Stock Could Double, Says AnalystOnce a specialist in oncology drugs and pain management, Sorrento Therapeutics (SRNE) has pivoted to attack COVID-19 head-on in 2020, offering up a smorgasbord of tests to detect the novel coronavirus, vaccines to prevent it, and therapies to combat it. As the President’s illness illustrates, the coronavirus contagion is still very much a threat — and no one is safe.With this in mind, Dawson James analyst Jason Kolbert released a note focusing in on the President’s doctors’ use of polyclonal “cocktails” of antibodies to fight the virus, and what that might mean for Sorrento Therapeutics — whose treatments haven’t been administered to the President (that we know of), but might soon become available to other patients in need.Sorrento is gearing up to hold an “R&D Day” event on October 13, reports Kolbert, at which the company will discuss its “comprehensive multi-modal approach to COVID-19” and the progress it has made on its various Covid-fighting endeavors. Two of Sorrento’s projects in particular interest Kolbert, the STI-1499 (which Sorrento has branded “COVI-GUARD”) and STI-2020 antibodies.As the analyst explains, “both STI-1499 and STI-2020 demonstrated protective activities against SARS-CoV-2 infection in Syrian golden hamsters.”That’s a curious statement to make, of course, and if it suggests to you that Sorrento isn’t particularly far along in development of this therapy — you’re right. In fact, Kolbert admits that STI-1499 — which the analyst considers Sorrento’s “lead candidate” as a coronavirus therapy — is only in Phase 1 clinical trials at this point. (No mention of how far along STI-2020 might be).That being said, the analyst notes that a 2,000 micrograms dose of STI-1499 “reduced virus load below the detection limit in 60% of animals tested” — and cut the viral load by at least 10x in the remaining 40%. STI-2020, meanwhile, showed efficacy at just 500 micrograms, reducing evidence of the virus to undetectable levels “in 100% of animals tested.”Kolbert muses that, should the two antibodies be mixed into a “cocktail,” the likes of the Regeneron cocktail that was administered to President Trump, “the product could remain effective even if virus mutations occur,” wiping out a patient’s infection before it has a chance to mutate and survive.Indeed, says Kolbert, Sorrento is already working on such a cocktail that it dubs “COVI-SHIELD,” and the analyst assumes that the company will be successful in developing this. Still, as a valuation exercise, he assigns the cocktail only a 50% chance of success (success meaning, in this case both that the cocktail works, and survives the phased process of FDA approval and is ultimately approved). Kolbert believes that this could happen “rapidly,” and argues that over and above Sorrento’s core activities in oncology and pain management, COVID treatments therefore offer a “significant … valuation potential” for the stock.How much “potential” are we talking here? Working the numbers, Kolbert arrives at the conclusion that Sorrento stock could be worth as much as $21 a share, or roughly twice what the shares cost today. Accordingly, he rates Sorrento stock a “buy.” (To watch Kolbert’s track record, click here)It has been relatively quiet when it comes to other analyst activity. In the last three months, only 2 analysts have issued ratings. However, as they were both Buys, the word on the Street is that SRNE is a Moderate Buy. Based on the $25.50 average price target, shares could climb 137% higher in the next twelve months. (See SRNE stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road
#12-01 Capital Tower
Singapore 068912

New York

Coming Soon!

Dubai

Coming Soon!

Market Coverage