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Biotech Identifies Antibody with 100% SARS-CoV-2 Inhibition
Research Report

Source:

The goal of Sorrento Therapeutics to develop a Covid-19 antibody cocktail, including its progress, next steps and market opportunity, is reviewed in a Dawson James report.

In a May 26 research note, Dawson James analyst Jason Kolbert reported that Sorrento Therapeutics Inc.'s (SRNE:NASDAQ) "STI-1499 (antibody) has demonstrated in early data a 100% inhibition of the SARS-CoV-2 virus infection of healthy cells after four days of incubation."

He added that "we see a significant market opportunity in treating frontline workers (doctors, nurses and other mission critical personnel, as well as occupants of military ships at sea) to prevent and treat COVID infection."

The California-based biotech aims to create an antibody cocktail against SARS-CoV-2 infection, which would still be effective if virus mutations occur. Kolbert reviewed Sorrento's progress in this regard.

After examining billions of antibodies, the company singled out one, STI-1499, from a group that in early tests showed they bound to the S1 subunit of the SARS-CoV-2 spike protein and entirely blocked their interaction with the human angiotensin-converting enzyme 2 (ACE2), which is the receptor that the virus uses to enter human cells.

Kolbert added that STI-1499 works at a very low dose, meaning Sorrento potentially could quickly scale up to millions of treatments at a low cost. In fact, the company said that it could initially produce up to 200,000 doses each month. While it currently plans to produce 1 million doses, management said it could produce tens of millions of doses in a short time period to meet the great demand.

Consequently, Sorrento intends to develop STI-1499 as part of an antibody cocktail it calls COVI-SHIELD. The next step is getting it evaluated and reviewed on a fast tracked basis. The biotech expects to soon discuss with regulators the best pathway for doing so.

"Through the U.S.'s Project Warp Speed, it's possible we could see STI-1499 move rapidly to commercialization," commented Kolbert. The estimated market potential for it, he said, is about $4 billion, assuming 1 million doses at a price under $4,000, which is that of remdesivir, Gilead's COVID-19 antiviral.

In addition to COVI-SHIELD, Sorrento is developing nonopioid pain management therapies through Scilex as its 58% owner. One is resiniferatoxin for treatment of knee pain from osteoarthritis, terminal cancer and replacement deferment. Pivotal studies for this toxin, which ablates nerves that cause chronic, inflammatory pain, are expected this year.

Another of Sorrento's clinical-stage pain management therapeutics is Scilex SP-102, which is an epidural steroid injection for the treatment of sciatica pain. Phase 3 data are expected later in 2020.

Dawson James has a Buy rating and a $24 per share target price on Sorrento Therapeutics. Its current share price is about $5.06.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures for Dawson James Securities, Sorrento Therapeutics, May 26, 2020

The Firm does not make a market in the securities of the subject company(s). The Firm has NOT engaged in investment banking relationships with SRNE in the prior twelve months, as a manager or co-manager of a public offering and has NOT received compensation resulting from those relationships. The Firm may seek compensation for investment banking services in the future from the subject company(s). The Firm has NOT received any other compensation from the subject company(s) in the last 12 months for services unrelated to managing or co-managing of a public offering.

Neither the research analyst(s) whose name appears on this report nor any member of his (their) household is an officer, director or advisory board member of these companies. The Firm and/or its directors and employees may own securities of the company(s) in this report and may increase or decrease holdings in the future. As of April 30, 2020, the Firm as a whole did not beneficially own 1% or more of any class of common equity securities of the subject company(s) of this report. The Firm, its officers, directors, analysts or employees may affect transactions in and have long or short positions in the securities (or options or warrants related to those securities) of the company(s) subject to this report. The Firm may affect transactions as principal or agent in those securities.

Analysts receive no direct compensation in connection with the Firm's investment banking business. All Firm employees, including the analyst(s) responsible for preparing this report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of the Firm and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.

Analyst Certification: The analyst(s) whose name appears on this research report certifies that 1) all of the views expressed in this report accurately reflect his (their) personal views about any and all of the subject securities or issuers discussed; and 2) no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this research report; and 3) all Dawson James employees, including the analyst(s) responsible for preparing this research report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of Dawson James and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.




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