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Sorrento Therapeutics Analyst Says Coronavirus Antibody Cocktail One Of Few Non-Vaccine Options

Shanthi Rexaline

Sorrento Therapeutics Inc (NASDAQ: SRNE) shares spiked 158% Friday after the company disclosed that it has identified an antibody that demonstrated 100% inhibition of SARS-CoV-2 virus infection.

The Sorrento Analyst

H.C. Wainwright analyst Raghuram Selvaraju has a Buy rating on Sorrento with a $24 price target. 

The Sorrento Thesis

Sorrento has rapidly assembled a constellation of strategies for combating the coronavirus, Selvaraju said in a Monday note. (See his track record here.)

The strategies include:

  • STI-1499, named COVI-GUARD, which is being evaluated as a standalone antibody therapy aimed at blocking viral entry into host cells.
  • COVI-SHIELD, a proprietary cocktail of therapeutic antibody, including STI-1499, focused on inhibiting viral infection of healthy host cells.
  • A proprietary COVIDTRAP ACE2-Fc protein, which binds to the S1 domain of the spike protein of the SARS-CoV-2 virus, thereby blocking the virus from binding and infecting respiratory epithelial cells.
  • A next-generation, gene-encoded antibody vaccine against COVID-19.
  • The ACE-MAB fusion protein, which utilizes its STI-4920 antibody and Mabpharm Ltd.'s fusion protein CMAB020 to create a bispecific fusion protein with two functional arms.
  • STI-6991, an I-Cell COVID-19 vaccine.
  • A natural killer cell-based immunotherapy approach, named COVI-CELL, to treat critically and severely ill COVID-19 patients.

The analyst said he believes the antibody cocktail therapy would establish a high barrier to development of treatment resistance, while potentially providing protection against infection to at-risk populations, Selvaraju said. 

COVI-GUARD and COVI-SHIELD are likely to be used as prophylactic agents for those returning to work and as therapeutic interventions for those recently exposed to SARS-CoV-2, the analyst said. 

Each dose of this antibody cocktail therapy will provide antiviral protection for up to two months, he said. 

"In the absence of a vaccine, protection using an antibody cocktail may prove to be one of very few viable options."

SRNE Price Action

At last check, Sorrento shares were trading 2.81% higher at $6.95. 

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Latest Ratings for SRNE

Date Firm Action From To
Mar 2020 H.C. Wainwright Reiterates Buy
Oct 2019 JMP Securities Initiates Coverage On Market Outperform
Mar 2019 B. Riley FBR Maintains Buy Buy

View More Analyst Ratings for SRNE
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