The coronavirus pandemic has brought devastation all over the world but some companies which are working on ways to fight it have become the talk of the town and one such company is Sorrento Therapeutics Inc (NASDAQ:SRNE). The company is trying to combat the coronavirus pandemic on multiple fronts and as such, it has seen its stock soar as well in recent weeks.
Reasons for Such a Big Rally
Sorrento is not only working on a COVID 19 vaccine, but it has also come up with treatments and diagnostic tests meant for the coronavirus. Over the course of the past three weeks, the stock has rallied strongly and managed to gain as much as 125%. In such a situation, it could be worthwhile for investors to perhaps start taking a closer look at Sorrento.
On August 10, the Sorrento stock continued its upward move on the back of its increasing focus on it as a coronavirus play. The recent events have to be taken into consideration in order to understand the rationale behind the remarkable rally. Back on July 24, the company announced that it was all set to acquire the coronavirus therapy development company SmartPharm Therapeutics. A few days later it emerged that Sorrento had managed to in-license a coronavirus test as well that could present a result in half an hour.
On the other hand, it is necessary to point out that the company has also come up with a vaccine for the coronavirus known as COVI-GUARD, and back in May, Sorrento claimed that the product demonstrated the ability to completely neutralize COVID 19. These observations had been made by the company in pre-clinical trials. That had been one of the big reasons Sorrento had come into focus among investors in the first place. While this is a major deal for the company, it should not be forgotten that Sorrento has another product up its sleeve that is meant to tackle the coronavirus. It is Abivertinib and currently, the company is conducting a phase 2 clinical trial on it.
The product in question is meant for the treatment of coronavirus patients who might be suffering from moderate to severe symptoms of COVID 19. The company is also testing the effectiveness of the medicine on hospitalized COVID 19 patients who have suffered from a fatal immune reaction from the virus known as a cytokine storm.
Last but not the least, the company has also come up with a COVID 19 diagnostic test known as COVI-TRACK and that can apparently produce a result in as little as 8 minutes. The application for an emergency use authorization is still being pondered upon by the United States Food and Drug Administration. Investors could do well to keep an eye on these developments.
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