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Sorrento Therapeutics Stock Surges 20% After DARPA-JPEO Contract Award

Shares of biopharmaceutical company, Sorrento Therapeutics (NASDAQ: SRNE) are rallying on Friday after the company said that its wholly-owned subsidiary, SmartPharm Therapeutics, has been awarded a contract from the Defense Advanced Research Projects Agency (DARPA).

The contract, which will be co-funded by the Joint Program Executive Office (JPEO), will see SmartPharm work on developing a rapid countermeasure to COVID-19.

“We are excited that DARPA and JPEO have recognized our Gene MAbs platform as a potential rapid countermeasure for COVID-19 and the potential value for other applications to combat future viral diseases of pandemic potential,” said Dr Henry Ji, Sorrento’s CEO. 

The deal will provide Smartpharm with up to $34 million for development through Phase 2 clinical studies of a gene-encoded antibody that could enable quick protection from and/or treatment of SARS-CoV-2 infection and COVID-19.

If the studies are successful, Sorrento will seel further funding for emergency use authorisation approval and large scale manufacturing. 

Shares of Sorrento Therapeutics jumped as high as 20% premarket and opened up at $8.28. However, they have since shed some of those gains and are now trading at $7.83, up 13.48%.

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Sam Boughedda
Sam Boughedda
Team Member

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. 

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