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Whether Sorrento Therapeutics Could Benefit From A Short Squeeze
Feb. 03, 2021 9:58 AM ETSorrento Therapeutics, Inc. (SRNE)2 Likes
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Simone Francesco Sala
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Summary
Sorrento Therapeutics has recently disclosed positive results in anti-COVID allogeneic adipose stem cells research.
Sorrento Therapeutics is among the Nasdaq stocks with the highest short interest at 26.8%.
I believe that the combination of a strong research pipeline with high short interest can lead to interesting returns.
The GameStop (GME) short-squeeze drama has turned the spotlight on small- and mid-cap stocks with a high level of short interest. Heavily shorted stocks could become the target for so-called social trades by retail investors, who look to set off sharp price increases in these names and put pressure on short sellers, who need to buy shares they sold short to cover their positions.
Retail traders are now looking for other stocks with similar characteristics to GME: a short interest standing at over 20% of the total float, a market cap of over $1 billion and a stock price of possibly $20 per share or less.
I analyzed the Nasdaq looking for stocks that met those parameters and, among them, Sorrento Therapeutics (SRNE) stood out.
Company overview
Sorrento Therapeutics is a clinical-stage and commercial biopharma company. The Company operates in three main areas: Immune-Oncology, Non-Opioid Pain Management and COVID-19.
SRNE operates in the Immune-Oncology therapeutic area, leveraging its G-MAB antibody library and targeted delivery modalities to create the next generation of cancer therapeutics. These modalities include chimeric antigen receptor T-cell therapy (CAR-T), dimeric antigen receptor T-cell therapy (DAR-T), antibody-drug conjugates (ADC), as well as bispecific antibody approaches. Additionally, Sorrento Therapeutics’ effort in the Immune-Oncology segment led to the development of Sofusa, a drug delivery technology that delivers biologics directly into the lymphatic system to potentially achieve improved efficacy and fewer adverse effects than standard parenteral immunotherapy.