Sorrento Therapeutics: Short Term Catalyst
Sorrento Therapeutics investors are sitting at a very peculiar point on the timeline of short term catalysts. Sorrento has a rapid antibody test, on the seventh week awaiting FDA EUA approval, and on the brink of FDA clearance for the start of STI-1499 phase 1b. Sprinkle in a settlement from Patrick Soon-shiong and you can make a case that Sorrento is looking to make a breakout out of its current week and a half down trend.
It appears as though COVI-TRACK has been uploaded on the the FDA website for review. This is great news, but what can we extrapolate from that recent action? In my experience, and from hearing Dr. Ji speak at the Terrapinn conference July 28th 2020, we should be hearing from the FDA soon. Dr Ji mentioned at the conference that he and Dr Brunswick had been going back and forth with the FDA, ensuring that the submittal was spotless, and that EUA approval is imminent. Dr. Ji also mentioned at the conference that Sorrento already has world wide interest for the test, in other words, Sorrento already has guaranteed sales. These current events cement one of my favorite lines on StockTwits when traders are getting restless waiting for news, "Sorrento Therapeutics is an expert when it comes to antibodies. It is not a matter of if, but when we get EUA approval."
Many are wondering as to when the clinical trials are to begin, and after the conference, investors were able to grasp onto some clarity on this matter. Dr Ji spoke to this, and declared with confidence that Sorrento had been back and forth with the FDA, and would be submitting IND paperwork in the near future. Near future, meaning the end of this month early August. STI-1449 is Sorrento's key antibody, As Dr Ji exclaimed that it is extremely potent, and completely neutralizes the virus in vitro. Another key note from the conference was mention of the SmartPharm Acquisition, and why it was important for Sorrento. SmartPharm & Sorrento have been working on gene encoded antibodies, but what's so special about that? Well, this novel approach allows Sorrento to genetically encode the monoclonal neutralizing antibodies, and give a plasmid based injection that accelerates Immuno- response times, and also manipulates the antibodies to last in the body for longer periods of time. Remember when Dr Ji was on Cramer's show, and he mentioned he could manipulate antibodies to last for longer periods of time in the body? Well, looks like he also has ways to acquire the company SmartPharm that was instrumental in this process. Last but not least, the clinical trials have been updated, and one change to take not of is the addition of a 200mg dose. This addition is a clear indication that immunotoxicity at this dose is not likely. Trading around $7.50, and with so many shots on goal, this gem won't be trading at a discount much longer.