Sorrento Therapeutics: Catalyst That Go Boom!
Updated: Aug 6, 2020
Before I begin, I might as well share with you a snippet about me. I started out my career at 24 as a financial advisor for five years, and ditched working in the bullpen to be a full time business consultant. During all that time I had been trading on the side. I finally started full time trading 7 years ago focusing on the biotech sector. I do not work alone, as 2 contributors to the research and development team are ex NIH scientist that consult with me on a daily basis. I am fortunate to say I am blessed to have them on the squad. What I write is not work of one person, but from a team of five. Now let's move on from the formalities and focus on the trade/investment in front us this month.
It is really hard to pinpoint time frames when it comes to Biotech trading/investing. When it come to putting exact time frames you have to live, eat, breathe the company and be in tune with politics, macro and micro economics, Science, trends, and the list goes on. Trading this ticker everyday, and staying on top of every minute detail has given me an advantage to the overall market. Volatility on this chart will snipe the average trader. If your going to invest/trade on this chart, you better have tradeable/actionable time frames.
The first catalyst I am going to cover is the COVI-TRACK test. We are now on the 8th week of waiting for EUA. It was only 2 months ago when the FDA was allowing companies to manufacture and distribute tests on good faith. It only took a few bad apples before the FDA put a stop to that nonsense. Within the last two weeks, the FDA also revoked an umbrella EUA they had issued during that time frame. Let's just say the process is much more stringent now, and I'll say it, POLITICAL. Now I cannot give you an exact date as to when COVI-TRACK will receive approval, but I can tell you this. If you are not in the invested when it is announced you will be chasing as this ticker will move, and it moves quick. Get in early, cause any day now news can hit the wire.
The second catalyst I want to cover is one that is very Important. This is the trial, that if successful, will make a SRNE take off to the likes of NVAX. Now STI-1499 "The Cure" is slated to start trials this month. Dr Ji mentioned at the Terrapin conference that he would be submitting the IND package in the very near future, and when he says that, he means Aug 14 at the latest. Now, many people will have you fooled into thinking that once the IND is submitted that Sorrento Therapeutics will have to wait forever to hear back from the FDA. That couldn't be further from the truth. When a company submits an IND, the FDA has 30 days to deny it. A denial is not even in the picture for Sorrento Therapeutic, so get that out of your head right now. The FDA will not wait for the full 30 days to approve STI-1499 IND either. How do I know? Get this. The FDA and Sorrento Therapeutics have been going back and forth in a pre IND talks. During those talks the FDA gives guidance as to what they want to see upon IND submittal. Its like your professor proofreading your 1st and 2nd draft of a writing then asking you to make those changes. You make those changes and its an easy A. I hope I painted a picture that the IND will be approved. My hypothesis is that the trials will begin late August for STI-1499 'The Cure"
The third catalyst to be aware of is phase two trials of Abivertinib. I want to make this clear about this drug. It has already shown efficacy in a phase two lung cancer trial and currently ready to begin phase 3. For that reason, Abivertinib did not have to go through a phase 1 trial for covid related cytokine storms. After speaking with the team on this matter, it was unanimous that Abivertinib will show promising data of stopping cytokine storms in covid 19 patients, in the late stage of the disease. In fact, bio ethically if Abivertinib is saving lives, they will halt the trial. No reason to give a placebo to sick people if you have a the drug that is saving them. Immediate EUA will be granted upon Abivertinib saving lives. Let the trials begin!
All the hype around this 30 minute saliva test took price action to the next level. It was like throwing gas on fire. I mean, Sorrento Therapeutics had a 24 dollar price target before this covid pipeline. Sorrento now has:
COVI-TRACK™ (Antibody Test for the Detection of Antibodies to SARS-CoV-2 in blood)
COVI-GUARD™ (Neutralizing Antibody – STI 1499)
COVI-SHIELD™ (Neutralizing Antibody Cocktail)
COVIDTRAP™ (ACE2 Receptor Decoy – STI 4398)
ABIVERTINIB (Cytokine Storm – STI5656)
And now *COVI-TRACE™ (Diagnostic Test for the Detection of SARS-CoV-2 in Saliva)
in the Covid pipeline. Covitrace was the last straw before people realized what a great company Sorrento is becoming. Don't be surprised when you see new analyst start to cover this ticker and the price tags continue to be raised. Keep your focus on STI-1499 beginning phase 1b and completing it as a success. Also, the rapid Antibody test EUA approval which is due any day now. Make sure to follow me on twitter and ask me on Stocktwits for more commentary on this ticker.
ClinicalTrials.gov ID: NCT04454398
Phase: Phase 1 b
Est. Study Start Date: August 2020
Est. Primary Completion: January 2021
Est. Study Completion Date: January 2021