The stock of biotech company Sorrento Therapeutics Inc. (NASDAQ: SRNE) rose nearly 11 % this week following positive news. At the auction on June 3, SRNE share cost $ 8.1, decreasing -4.03% or -$0.34. The price oscillated between $8.09 and $8.55 throughout the day. The company traded 6.24 million shares, lower than its 50-day daily volume of 7.06 million and lower than its year-to-date volume of 12.75 million.
The company’s stock has gained 95.65% over the last 12 months, and it has gained 10.50% over the last week. During the last six months, the stock has risen 1.38%, and over the last three months, it has decreased -8.06%. So far this year, the stock has returned 18.68%.
The acquisition of ACEA Therapeutics by Sorrento Therapeutics is expected to cost $ 38 million, with an additional $ 450 million cash payment required subject to a certain condition. ACEA Therapeutics provides Sorrento Therapeutics with a diverse range of drugs, including the promising abivertinib.
Clinical trials on this candidate were completed in the treatment of lymphoma and non-small cell lung cancer. Clinical trials of abivertinib are also being conducted for acute respiratory distress syndrome associated with COVID-19. By the end of September, Sorrento Therapeutics plans to submit the results of this clinical trial.
Moreover, Sorrento Therapeutics Inc. (NASDAQ: SRNE) plans to conduct new clinical trials to test the drug’s efficacy against other cancers (prostate cancer, leukemia) and autoimmune diseases, such as multiple sclerosis and lupus. Also, Sorrento Therapeutics is seeking a larger partner to develop and market abivertinib worldwide.
Sorrento Therapeutics Inc. (NASDAQ: SRNE) is also experiencing growth thanks to its partnership with the Mexican government: its Covi-Stix test is included on the Mexican government’s official list of rapid antigen tests approved emergency use. A study conducted by Mexican health officials found that Sorrento Therapeutic’s 15-minute diagnosis was more sensitive and specific than other COVID-19 tests. Managers of the company believe starting in Mexico will increase the chances of getting emergency approvals in other countries of Latin America.