NEW: No-Cost Streetwise Reports Live! Events. This type of intellectual capital is usually not made available to the general public. Learn More

Get the Latest Investment Ideas Delivered Straight to Your Inbox.

TICKERS: SRNE

Biopharma's Therapeutic Jumps to Phase 2 Testing for COVID-19 'to Shut Down the Cytokine Storm'
Research Report

Source:

A development update on Sorrento Therapeutics' three coronavirus-related products is provided in a Dawson James report.

In a July 20 research note, Dawson James analyst Jason Kolbert reported that Sorrento Therapeutics Inc.'s (SRNE:NASDAQ) Abivertinib advanced to a Phase 2 trial for COVID-19.

Kolbert summarized the therapeutic's mechanism of action and the upcoming study.

Abivertinib is a tyrosine kinase inhibitor (TKI) that inhibits the production of pro-inflammatory cytokines such as Interleukin-1beta, Interleukin-6 and tumor necrosis factor alpha, he wrote. This is significant because "these cytokines are associated with cytokine release syndrome, or cytokine storm, and COVID-19 disease progression with poor outcomes in patients with acute respiratory distress syndrome (ARDS)," Kolbert explained.

Because Abivertinib targets multiple cytokines at the same time, the hypothesis is that its effects will surpass those of other TKIs that solely inhibit Interleukin-6, which is the target in other COVID-19 trials.

Sorrento's Phase 2 study, Kolbert indicated, will be double blinded and randomized and will evaluate the efficacy and safety of Abivertinib (STI-5656) with standard of care versus standard of care in hospitalized COVID-19 patients.

Kolbert provided updates on the progress of Sorrento's two other COVID-19 products: a diagnostic and an antibody cocktail.

As for its fast, accurate COVI-TRACK diagnostic, the company is waiting for the U.S. Food and Drug Administration to give emergency use authorization for it. Once that happens, the test should be available for nationwide distribution.

Regarding COVI-SHIELD, Sorrento's antibody cocktail against SARS-CoV-2 coronavirus infection, the next steps are priority evaluation and accelerated review. The company expects to have discussions with regulators soon about advancing COVI-SHIELD, which could move quickly to commercialization through United States' Project Warp Speed.

Of the small group of antibodies that Sorrento identified as blocking the interaction of the S1 protein with human angiotensin-converting enzyme 2, which is the receptor through which viruses enter human cells, antibody STI-1499 was a standout. In early experiments, the biopharma found that it completely blocked the SARS-CoV-2 virus and did so at a low dose. Thus, the biopharma plans to develop STI-1499 as part of COVI-SHIELD.

Dawson James has a Buy rating and a $24 per share target price on Sorrento Therapeutics. The stock is currently trading at around $8.02 per share.

[NLINSERT]

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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures for Dawson James Securities, Sorrento Therapeutics, July 20, 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 June 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.




Learn More about Streetwise Reports Live

Want to read more about Life Sciences Tools & Diagnostics and Biotechnology / Pharmaceuticals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe