At this point in time, there are many investors who are looking for possible coronavirus plays and over the past few months, many stocks have come to the fore. One of the foremost among those is that of Sorrento Therapeutics Inc (NASDAQ:SRNE), which has got a lot of attention since it is now engaged in as many as three preclinical programs related to COVID 19 products.

Major Triggers

This has resulted in the company being in the focus of investors in recent months and on Thursday, the stock managed to deliver gains of as much as 10%. However, that is not all. Potential investors also need to recognize the fact that the Sorrento stock is up by as much as 30% over the course of the past two weeks alone.

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That being said, it is also necessary for investors to keep in mind that the company has also made an acquisition and that makes its potential pipeline even more robust. Considering the sort of gains that the Sorrento stock has generated in recent weeks, it will be remiss if investors did not take a closer look at what the company has been up to.

In this regard, it is also important to note that recently the company made an announcement that went a bit under the radar. Sorrento announced that it had inked a letter of intent to acquire the company SmartPharm.

SmartPharm is involved in the development of gene delivery platforms and is particularly focussed on rare diseases like COVID 19. Although the financial details of the transaction have not been revealed by Sorrento yet, the acquisition is expected to be completed next month. The important thing to keep in mind is that the acquisition might allow Sorrento to create a single injection solution for the delivery of its COVID 19 vaccines.

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However, in this regard, it is necessary for investors to recognize that the scope of the acquisition is not only going to be restricted to COVID 19 vaccines. It can help with the delivery of other vaccines as well. The Chief Executive Officer of Sorrento Henri Ji stated that collaboration with SmartPharm is also going to work on solutions for cancer.

However, the key information is the amount of money that Sorrento is going to spend on the acquisition and that has created a degree of uncertainty with regards to this particular stock. At the end of the day, no investors want a company to overpay for an acquisition. That being said, it is also necessary to keep in mind that the acquisition could propel Sorrento into the big time if everything falls into place. Hence, it could prove to be a good speculative bet under the current circumstances.

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