What happened?

Shares of Sorrento Therapeutics (NASDAQ:SRNE) are rocketing higher today on reports that the biotech company has made a breakthrough in the fight against COVID-19. Sorrento Therapeutics's shares are up by more than 100% as of 11:49 a.m. on Friday.

So what

In an interview with Fox News, Dr. Henry Ji, CEO of Sorrento Therapeutics, said:

We want to emphasize there is a cure. There is a solution that works 100 percent. If we have the neutralizing antibody in your body, you don't need the social distancing. You can open up a society without fear.

The cure in question is an antibody called STI-1499 that Sorrento Therapeutics has been developing. If Dr. Ji's claims prove accurate, it would be, to put it mildly, a big deal.

Man on a ladder drawing an upward-pointing graph.

Image Source: Getty Images.

Medical professionals believe that a relatively large percentage of those who contract the SARS-CoV-2 virus that causes COVID-19 are asymptomatic, and these silent carriers of the virus can still infect others. This factor explains why many are still fearful that there will be a second wave of COVID-19 infections, especially since several states are now beginning to ease social-distancing rules. These fears will never truly subside without a reliable way to prevent new COVID-19 infections.

Now what

Sorrento Therapeutics could reap immense financial benefits if it has indeed found a way to treat and prevent COVID-19. However, investors should remember that until the biotech company demonstrates the efficacy of its product, nothing is set in stone.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.