Sorrento Therapeutics initiated with a Buy at Dawson James

Dawson James analyst Jason Kolbert initiated coverage of Sorrento Therapeutics with a Buy rating and $24 price target. The company’s STI-1499 antibody has demonstrated “a 100% inhibition of the SARS-CoV-2 virus infection of healthy cells after four days of incubation” in early data, noted Kolbert, who thinks it is possible that STI-1499 will move rapidly to commercialization via the U.S.’s Project Warp Speed. Sorrento plans to develop STI-1499 as part of an “antibody cocktail,” known as COVI-SHIELD, and Kolbert applies a probability of success of just 50% in arriving at his $24 price target on the stock, adding that “given the size of the indication, the valuation potential for COVID alone is large.”