It looks like not every biotechnology company is doing well in the stock market today. I guess that’s how the game works, though. If there’s a winner, there also has to be a loser. It’s inevitable. Today, that loser is Sorrento Therapeutics (NASDAQ:SRNE).
What Happened Today For Sorrento Therapeutics?
Sorrento Therapeutics is being surpassed by Tenax Therapeutics in every way possible today. While Tenax is trading up more than a whopping 100%, Sorrento Therapeutics is currently trading down more than 15% on the Nasdaq Exchange. So, what happened? Why is one company doing evidently better than another company in the same field?
The answer is fairly simple. Tenax Therapeutics just had its positive preclinical data published in a renowned medical journal, while Sorrento Therapeutics is dealing with a Pomerantz LLP investigation. Sparked by claims on behalf of the biotech’s investors, Pomerantz LLP is looking into whether or not Sorrento Therapeutics and certain members of its team participated in the following: securities fraud and/or other illegal business practices.
The news of the investigation first surfaced on Wednesday, February 27. Considering it has been two days since the initial press release and the stock is still seeing red, I would say the market is still quite wary about the outcome of the investigation. The stock opened the trading session at $10.05, but, as of right now, Sorrento Therapeutics is trading at $8.45. This puts the stock down $1.50, or 15.08%. It currently has a market capitalization of 670.27 million.
With all of that being said, I can’t help but think about yesterday’s trading day when determining whether today’s drop of 15% makes sense. After all, shares of the company skyrocketed on Wednesday. Why? Because Sorrento Therapeutics announced that the FDA had approved its non-opioid pain patch to help with nerve pain connected to shingles.
Perhaps investors are coming down from yesterday’s FDA announcement high and that’s why the stock is trading down as much as it is today. The excitement may have faded, causing investors to remember that there is still an ongoing investigation into the California-based company.
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