One of the more remarkable turnaround stories from among pharmaceutical stocks has been that of Sorrento Therapeutics Inc (NASDAQ:SRNE). In February 2018, the stock had been trading at $10.65 a share to around $1.50 a share and the market cap went below $300 million as well.
However, 2019 has been quite different and the stock surged to as much as $5.09 a share in January after it emerged that a private equity firm was prepared to acquire Sorrento for $1 billion. However, that euphoria soon passed and the stock retracted. That being said, the stock has bounced back nicely in recent times.
The stock has now gone to $8.15 a share and the market cap of Sorrento now stands at $1.67 billion. The stock has gained significantly in recent days and one of the major triggers came on Monday. The United States Food and Drug Administration granted the clearance to Sorrento to start the Phase 2 clinical trial with coronavirus patients suffering from severe breathing difficulties.
This is a major development for Sorrento considering the commercial potential of the product. In addition to that, it also puts Sorrento in a select group of companies with Gilead Sciences, Moderna and Inovio Pharmaceuticals.
Sorrento has had wild ups and downs over the past few years but experts believe that the latest bullish pattern could be different from the ones in the past. Hence, it could be worthwhile for investors to keep an eye on the Sorrento stock and keep track of the latest developments around it. The stock has managed to display strong momentum and it remains to be seen if it can continue to do so in the coming days. Ultimately, the forward momentum in the stock is going to be sustained through more positive developments but at this point of time, the stock has been making interesting moves.