Sorrento Therapeutics (NASDAQ:SRNE) Stock Sees High Volatility: Better To Stay Away?

Sorrento Therapeutics (NASDAQ:SRNE) shares are down by 9% from the beginning of the week as the firm came out with U.S. Food and Drug Administration clearedResiniferatoxin (RTX). RTX is a non-opioid medication which targets treating of knee pain from osteoarthritis, for a Phase 2 clinical trial.

Sorrento has myriad Covid-19 treatment and diagnostics which have not been approved for new phase of testing. It is yet to introduce its covid products in the US market.

The firm said in a press information that the Phase 2 study would target determining the recommended dose for the next phase of trial. Both Phase 2 as well as Phase 3 testing is to have an impact with bigger patient populations.

Sorrento confirmed that the studies confirmed clinical potential of RTX drug for longer term control of pain related with knee osteoarthritis. However, the plummeting of stocks post announcements was confusing as the company has surged to prominence due to its various covid products, a significant list including drugs and diagnostics.

The development of RTX is a reminder that the firm is yet to bring an essential substance to market, that hasn’t escaped the disease threat. Sorrento’s movement downwards strangely came in the midst of good news.

Market Reaction:

On Thursday, SRNE stock moved up 7.26% at $8.87 with more than 10.64 million shares, compared to its average volume of 7.73 million shares. The stock had moved within a range of $7.90 – 8.99 after opening the trade at $8.01. Over the past 52-week, the stock has been trading within a range of $5.17 – 19.39.