Sorrento Stock Plummets 70% Following Bankruptcy Filing

SRNE Stock

SRNE Chapter 11 Filing

On February 13, the COVID-19 medication and vaccine manufacturer Sorrento Therapeutics (SRNE:NSD) filed for Chapter 11 bankruptcy in a Texas court, causing its shares to fall by over 70%. The filing followed a court judgment that supported the American Arbitration Association’s decision to award damages in the millions of dollars in a legal battle with NantCell and NANTibody.

Despite being a prominent player in the COVID-19 medicine and vaccine research industry, Sorrento’s shares experienced a phenomenal response, with more than 91.8 million shares changing hands compared to the 65-day average of 1 million.

In December, Sorrento stated that the FDA has given their mRNA-based COVID-19 vaccine candidate, which targets Omicron variations, authorization to begin clinical trials. However, the company’s future ambitions have been placed into doubt by the bankruptcy filing.

Scilex Holding Company, a majority-owned subsidiary of Sorrento, also saw a decline in its stock price in response to the news, with SRNE stock shares trading 34% lower. The producer of non-opioid pain treatments had just announced the acquisition of U.S. and Canadian rights to Elyxyb, an FDA-approved treatment for migraines.

Short-sellers and a passionate retail investor base have debated Sorrento’s stock, with Seeking Alpha contributor Kevin Mak dubbing it a “battleground” in January. The bankruptcy filing and consequent share price decline are certain to spark additional discussions and arguments concerning the future of Sorrento and its subsidiary.

SRNE Stock Price Performance:

Based on the SRNE stock forecasts from 3 analysts, the average analyst target price for SRNE stock is USD 9.00 over the next 12 months. Sorrento Therape’s average analyst rating is Buy .

Stock Target Advisor’s own stock analysis of Sorrento Therape is Bearish, which is based on 1 positive signals and 7 negative signals. At the last closing, SRNE stock price was USD 0.94. Sorrento Therape’s stock price has changed by -7.84% over the past week, -21.01% over the past month and -70.44% over the last year.

Company Profile:

Sorrento Therapeutics, Inc., a clinical stage and commercial biopharmaceutical company, develops therapies for cancer, autoimmune, inflammatory, viral, and neurodegenerative diseases. It operates through two segments, Sorrento Therapeutics and Scilex. The company was founded in 2006 and is based in San Diego, California.

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