Biopharmaceutical company Sorrento Therapeutics (NASDAQ: SRNE) announced it has received FDA clearance to proceed with the study of its COVID-19 drug, sending its stock surging higher.
The drug, COVI-GUARD (or STI-1499), is used to treat hospitalised patients and Sorrento says that it helps to neutralise the spread of the coronavirus into healthy cells.
“The antibody has been 100% effective against the highly contagious D614G variant strain,” said Sorrento in its press release.
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The company is now allowed to start with patient enrollment into the Phase 1 trial after receiving a study may proceed letter from the FDA.
The STI-1499 program is being designed for rapid expansion, with international sites in Brazil being used to supplement the US program.
Sorrento stock price…
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Source: TipRanks
Shares of Sorrento Therapeutics shot higher after the news, closing over 5% post-market. However, in premarket trading on Thursday its shares have made further gains, trading over 30% higher at $10.95 per share.
With analysts surveyed by Tipranks predicting an average price target of $25.50 over the next 12 months, it seems there is still room to the upside for Sorrento.
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.
