This month, shares of Sorrento Therapeutics (NASDAQ:SRNE) have had the best monthly gain in the last 12-month period. Shares of the clinical-stage biotech company have jumped as much as 134% from $2.03 to $4.75 during the month.
Key Drivers
The stock has seen unusual volume throughout the month following several new corporate developments.
On March 22nd, 2019, Sorrento Therapeutics announced the merger of its majority-owned subsidiaries Scilex Pharmaceuticals and Semnur Pharmaceuticals. The merged entity is known as Scilex Holding Company. Sorrento’s stake in the newly merged company has been reduced to 58% from its 77% stake in Scilex Pharmaceuticals. This will help both the companies to work together synergistically to become a global leader in non-opioid pain.
The merger is happening at a time when Scilex’s lead product ZTlido® has been witnessing rapid progress in the initial months of commercial launch, and Semnur’s key compound (non-opioid corticosteroid gel) is in Phase 3 pivotal studies for the treatment of lumbar radicular pain/sciatica.
So it will be very interesting for shareholders to watch out for key progress from the newly formed company.
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On March 26th, 2019, Scilex Holding updated impressive Phase 2 trial results for its Leading SP-102 Program, which is used for the treatment of lumbar radicular pain. The company used a total of 19 subjects, 15 of which were given repeated SP-102 epidural injections 4–8 weeks after the index injection. All subjects saw a reduction in daily leg and back pain measured by the Numeric Pain Rating Scale (NPRS) following both injections.
On Investors’ Radar
Going forward, investors should focus on Sorrento Therapeutics’ key developments regarding SP-102. Any positive response from the FDA about the new drug could push up the stock much higher, but the reverse could happen too, with negative news pushing the stock down.
Technically, the stock is trading above two key moving averages, the 200-day moving average, and the 50-day moving average. Also, SRNE formed multiple bottoms at around the $2 level in the month of March.
Considering increased volume and price action last month, shares of SRNE could be on investors’ radars in the coming weeks.
Featured image: Pixabay
