Sorrento Therapeutics Inc [NASDAQ: SRNE] continues its upside momentum that started in pre-market trading. This follows the company’s announcement that it had received clearance from the FDA to go ahead with its phase 1 clinical trial of COVI-GUARD, an antibody for people suffering from COVID-19. The company had earlier announced that COVI-GUARD had shown 100% in vitro neutralizing effect against SARS-COV-2 and had the capacity to prevent the infection of healthy cells in preclinical studies.
The company also announced that STI-1499 had been evaluated in pre-clinical studies using multiple strains of SARS-Cov-2, including the highly contagious version of it called D614G. The company has stated that D614G was handled at similar dose levels as those use when testing the antibody on the US-WA1/2020 strain of the virus.
For the company to be given the go ahead by the FDA, it presented data from Syrian Golden Hamsters that were infected with the virus. This data supported a human dose for the company’s IND. From this data, the company found that humans need about 160mg of the treatment. The company further stated that the high potency of this treatment could see it get scaled up for manufacturing. The company stated that the program is already being made for a quick expansion to international markets including hard hit nations such as Brazil.
The progress made so far has a number of implications for the company. First, it is likely to create FOMO as investors rush to buy, in anticipation of a breakthrough. That’s because COVID-19 has put the world economy on standstill and any company that succeeds in coming up with a viable vaccine or treatment stands to reap big due to the high demand. As such, growth chasing investors are likely keep bidding up this stock now that it has shown potential as a viable treatment option for COVID-19.
Besides speculation, the company stands to grow in intrinsic value if it manages to see this project to its conclusive end. That’s because there is ready demand for the product and the company is in a position to dictate the price. The end result would be that the company’s revenues stand to grow exponentially in the near-term. By extension, this would lead to an increase in the stock price to reflect the new dynamics.
About Sorrento Therapeutics Inc
Sorrento Therapeutics Inc is a biopharma, company that develops treatments for a wide array of ailments. It is headquartered in San Diego, California.