Please ensure Javascript is enabled for purposes of website accessibility

Why Sorrento Therapeutics Is Skyrocketing Today

By Prosper Junior Bakiny - May 15, 2020 at 10:53AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company might have found a way to end the ongoing coronavirus pandemic.

What happened?

Shares of Sorrento Therapeutics (SRNE -8.36%) 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.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Sorrento Therapeutics, Inc. Stock Quote
Sorrento Therapeutics, Inc.
SRNE
$2.52 (-8.36%) $0.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
403%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.