季博士的SRNE準備起飛

季博士的SRNE箱型整理結束，準備起飛， 第一目標價位6.85.

 

The case for Sorrento Therapeutics

Sorrento captured investors' attention in May with its announcement that it had identified an antibody that could completely neutralize the novel coronavirus. The biotech stock skyrocketed on the news.

The company followed up earlier this month with an announcement that it had determine that a second antibody held the potential to completely inhibit infection by the virus that causes COVID-19. Both of Sorrento's updates, however, stemmed from preclinical testing only. 

Sorrento hopes to move into clinical studies with its experimental COVID-19 antibody therapies. In the meantime, the biotech has a handful of other programs in clinical testing.

Its lead candidate, resiniferatoxin (RTX), is being evaluated in phase 2 studies targeting terminal cancer pain and pain associated with osteoarthritis. Sorrento also has three programs in early stage testing: a CD-38 CAR-T therapy for treating multiple myeloma, a CD-38 antibody-drug conjugate targeting amyloidosis, and cancer immunotherapy Seprehvir.

These programs were attractive enough to prompt an acquisition offer for Sorrento earlier this year. However, the company's board rejected the nonbinding proposal from an unnamed private equity firm to buy Sorrento for up to $7 per share.

Because Sorrento is still a clinical-stage biotech, it's important for investors to closely monitor its cash position. The company had $21.9 million in cash and cash equivalents as of March 31, 2020. Sorrento will undoubtedly need more cash to fund its current clinical programs and advance its COVID-19 programs into clinical testing.

 

Better coronavirus stock

Positive results for any of its pipeline candidates would send Sorrento's shares soaring in a much bigger way than good news for Gilead would. However, with that potential for huge gains comes a much greater risk level.

My view is that Sorrento is too risky for most investors. Gilead Sciences faces risks as well, notably including the potential for pipeline failures. But Gilead is already highly profitable with several drugs on the market for which sales continue to grow briskly. With these established programs, a solid pipeline, and an attractive dividend, I think that Gilead is the better coronavirus stock -- and the better stock all around.