What happened?
Shares of Sorrento Therapeutics (NASDAQ: SRNE) are rocketing higher today on reports that the biotech company has made a breakthrough in the fight against COVID-19. Sorrento Therapeutics's shares are up by more than 100% as of 11:49 a.m. on Friday.
So what
In an interview with Fox News, Dr. Henry Ji, CEO of Sorrento Therapeutics, said:
We want to emphasize there is a cure. There is a solution that works 100 percent. If we have the neutralizing antibody in your body, you don't need the social distancing. You can open up a society without fear.
The cure in question is an antibody called STI-1499 that Sorrento Therapeutics has been developing. If Dr. Ji's claims prove accurate, it would be, to put it mildly, a big deal.
Image Source: Getty Images.
Medical professionals believe that a relatively large percentage of those who contract the SARS-CoV-2 virus that causes COVID-19 are asymptomatic, and these silent carriers of the virus can still infect others. This factor explains why many are still fearful that there will be a second wave of COVID-19 infections, especially since several states are now beginning to ease social-distancing rules. These fears will never truly subside without a reliable way to prevent new COVID-19 infections.
Now what
Sorrento Therapeutics could reap immense financial benefits if it has indeed found a way to treat and prevent COVID-19. However, investors should remember that until the biotech company demonstrates the efficacy of its product, nothing is set in stone.
10 stocks we like better than Sorrento Therapeutics
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Sorrento Therapeutics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of April 16, 2020
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
