Sorrento Therapeutics Has $4B Coronavirus Opportunity, Analyst Says

Sorrento Therapeutics Inc's SRNE coronavirus program has been met with equal optimism and skepticism, which has led to wild swings in its stock price.

The Sorrento Analyst

Dawson James Securities analyst Jason Kolbert initiated coverage of Sorrento with a Buy rating and a $24 price target.

The Sorrento Thesis

Sorrento is proceeding with the goal of generating an antibody cocktail against SARS-CoV-2 coronavirus infection, which could remain effective even if virus mutations occur, Kolbert said in a Tuesday note.

The analyst expects STI-1499 – Sorrento's first antibody in the planned antibody cocktail dubbed COVIDSHIELD – to move rapidly to commercialization, thanks to the U.S. Project Warp Speed.

While the antibody showed 100% inhibition in early studies, the low dose suggests the antibody "fits" its target extraordinarily well and, as such, can work at a very low dose, Kolbert said.

The analyst noted the company plans to engage with the regulators to determine the best pathway to make any potential treatment available as soon as possible. The company's management indicated it's well within its reach to produce tens of millions of doses in a short period of time to meet the vast projected demand.

"If we assume pricing below Remdesivir ($4k) and a million doses equals a $4 billion opportunity for this potential antidote," Kolbert said.

SRNE Price Action

Sorrento shares were up 4% to $5.27 at time of publication.

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