What happened
Shares of Sorrento Therapeutics (SRNE.Q) were up by 10.3% as of 2:02 p.m. EDT Thursday. Although the company hasn't released any news, the increase in new COVID-19 cases in many parts of the world may have investors thinking about the potential for Sorrento's COVI-STIX testing product.
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So what
That product recently received emergency use authorization (EUA) in Mexico, where daily new diagnoses have risen by 50% in the past month. The company submitted a request to the FDA at the end of last year for authorization for the test's use in the U.S., and is also working toward getting it a green light in Europe.
The combination of a faster-spreading SARS-CoV-2 variant of concern and the advent of the summer travel season has also pushed up the number of cases in Europe. The World Health Organization reported Thursday that the seven-day average number of new cases was up 10% in the region.
The difficulties that countries on that continent are having with containing the pandemic support the concern that areas of the U.S. with low vaccination rates will also experience intensifying outbreaks. That could spur continued domestic demand for COVID-19 testing products. If a new wave of cases does materialize, companies like Sorrento are likely to get a lot more attention from Wall Street.
Now what
Sorrento expects the first shipments of COVI-STIX tests to Mexico will be made this month. Investors will have to keep waiting for regulatory action in the U.S. and Europe.
