According to S&P Global Intelligence, the stock of the biotech firm focusing on cancer and pain medicines, Sorrento Therapeutics (NASDAQ:SRNE), fell 23.4% in September. SRNE stock (NASDAQ:SRNE) finished at $2.05 on August 31 before falling to a low of $1.52 on September 29. The stock is down more than 65% this year, with a 52-week low of $1.15 and a high of $7.40.
So, What Happened to SRNE Stock?
SRNE stock (NASDAQ:SRNE), a favorite choice among individual investors, has been experiencing financial difficulties. While revenue increased 7% year on year to $29.7 million, the biotech company reported a net income loss of $260 million through six months, compared to a loss of $164.2 million in the same period last year, and a $0.70 loss in earnings per share (EPS), compared to a $0.58 EPS loss in the first six months of last year. The market’s drop exacerbates the slow financials, especially for growing firms with little growth but a high debt-to-equity ratio, such as Sorrento, which has a long-term debt-to-equity ratio of 62.92. Another issue is that Sorrento had just $70.3 million in cash as of June 30.
Sorrento has a few commercialized products, including ZTlido, a topical lidocaine system, Gloperba for gout, and a COVID-19 fast antigen test licensed in Mexico and Brazil.
Fujovee (abivertinib), the company’s principal clinical candidate, is in phase 3 studies to treat non-small cell lung cancer (NSCLC) as well as severe COVID-19 in ICU patients, and a phase 2 study to treat castrate-resistant prostate cancer. After China-based research demonstrated a 56.5% response rate from Fujovee in combating NSCLC, with an average survival rate of 28.2 months, the business is proposing a new drug application (NDA) meeting with the Food and Drug Administration (FDA). The FDA also granted the business Fast Track designation for SP-103, a topical lidocaine treatment intended to treat lower back pain. Scilex Holding Company, a Sorrento subsidiary, is developing the medication.
So, what’s Next for SNRE Stock?
SRNE stock (NASDAQ:SRNE) has been a volatile stock in quest of one blockbuster medicine to make it profitable. Fujovee or SP-103 might be that treatment, but many investors have grown bored of waiting for the business to provide more good financial news. The firm has lost money for the previous four years in a row, and its liquidity condition is concerning. However, if Fujovee is allowed, many of its concerns will be resolved, and it may be the appropriate investment for a long-term investor who isn’t afraid of taking risks.
Featured Image- Megapixl @ Rafaelhenriquepress
Author Okoro Chinedu 
