Sorrento: Multiple Covid-19 Pipeline Catalysts on the Horizon
It looks like the pandemic isn’t behind us yet. The alarming rise in Covid-19 cases has coincided with the recent emergence of multiple highly contagious SARS-CoV-2 variants, including the easily spread Delta variant.
While the rates appear far lower in those vaccinated, H.C. Wainwright’s Ram Selvaraju says that considering the most recently evolved strains of the virus, “Some have begun to speculate that the vaccines may only reduce infectivity by less than 50%.”
“Such concerns underscore all the more the urgent need for effective, safe therapeutic options to aid those already infected with the virus responsible for the COVID-19 pandemic.,” the analyst went on to say.
And this is where Selvaraju believes Sorrento Therapeutics (SRNE) and its maturing Covid-19 pipeline enters the frame.
The company has been developing several potential treatments/diagnostics addressing the coronavirus.
Among these is COVI-MSC, a proprietary preparation of mesenchymal stem cells (MSCs), on course to enter a randomized, controlled clinical trial. Should results prove positive, Selvaraju thinks the FDA could provide the treatment with Emergency Use Authorization (EUA) before the year’s end.
“We note that 100% of the patients (n=10) treated with COVI-MSC in a Phase 1b study focused on the intensive care unit (ICU) context recovered fully and were discharged from hospital,” the analyst noted. The Brazilian regulatory authorities have also given the all clear for COVI-MSC to enter a Phase 2 trial.
Another offering is COVISHIELD, designed as a combo of two monoclonal antibodies and intended to defend against disease due to variants of SARS-CoV-2. Selvaraju says there is already evidence this method “retains effectiveness against multiple emergent SARS-CoV-2 variants with greater infectivity than the original strain.”
Near-term progress is also anticipated for the intranasally-delivered COVI-AMG antibody COVIDROPS and ACE2 receptor decoy COVIDTRAP.
Lastly, top-line data from both the Brazilian and the U.S. Phase 2 clinical trials of abivertinib in hospitalized COVID-19 patients is also anticipated this quarter.
To this end, Selvaraju reiterated a Buy rating for SRNE shares along with a $30 price target. If correct, the analyst’s objective could deliver one-year returns of 270%. (To watch Selvaraju’s track record, click here)
Interestingly, however, none of the Covid-19 pipeline is included in his assessment, which Selvaraju says could “drive meaningful upside” to the forecasts if successfully developed and launched.
Over the past 3 months, Selvaraju is the only analyst to have reviewed Sorrento’s prospects. (See SRNE stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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