Sorrento Therapeutics (NASDAQ: SRNE) stock has lost 60% from its 52-week high in February. The company refocused its business last year to address the growing threat of COVID-19, and a year later, the company is a COVID-19 play.
Recently the company announced that all nine patients in its phase 1b study of its human allogeneic adipose-derived mesenchymal stem cells. MSC0 responded rapidly with minimal need for high oxygen concentration. Sorrento said that the patients were transferred from ICU and discharged later within days of their third COVI-MSC infusion.
Most importantly, there were no safety events experienced following the infusion, and the company is now planning a placebo-controlled Phase 2 trial of the cocktail. The cocktail appears to be 100% effective and safe in treating COVID-19. Although COVID-19 vaccinations might diminish the need for treatment, there is the possibility that vaccines might not be as effective for some variants. This is great news for Sorrento, and after COVID, the company will pivot to other treatments. B. Riley analyst Mayank Mamatani gives SRNE stock a buy rating, and it is one to watch going forward.