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.