Sorrento Therapeutics, Inc.

Sorrento Therapeutics, Inc. (NASDAQ: SRNE) is a clinical-stage biopharmaceutical firm focused on antibody-based therapeutics for cancer and COVID-19. Sorrento Therapeutics and Scilex are two of the company's segments.

Key Highlights

• The company reported YoY growth of 63% in total revenues to USD 12.06 million in Q3FY21 (ended September 30, 2021) compared to USD 11.75 million in Q3FY20.
• However, due to increased operational expenses, SRNE's net loss expanded to USD 119.80 million during Q3FY21 vs. USD 84.02 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 162.67 million and total debt of USD 110.98 million.
• Its Gross Margin was 71.9% in Q3FY21 vs. the industry median of 85.3%.
• On January 13, 2022, SRNE's subsidiary Sorrento Therapeutics Mexico won the first tender offer by the Mexico City Municipal Government for the purchase of COVISTIX COVID-19 Virus Rapid Antigen Detection tests.
• On December 27, 2021, SRNE announced that its COVISTIX COVID-19 Virus Rapid Antigen Detection Test Detects the Omicron Variant. It also stated that COVISTIX could detect SARS-CoV-2 and its significant variants of concern (VoCs).
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• Today, the stock has reached the lower end of its 52-week range of USD 4.33 to USD 17.25.
• SRNE's stock price decreased 45.33% and 41.80% in the past six and nine months, respectively.

Technical Price Chart (as of January 13, 2022). Analysis by Kalkine

Conclusion: Considering the flat topline growth, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 4.33, down 3.56%, as of January 13, 2022.

*The reference data in this report has been partly sourced from REFINITIV.  

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.