Sorrento Therapeutics just posted a 26% rise in quarterly sales for its ZTlido drug
Sorrento Therapeutics Inc (NASDAQ:SRNE) is making another run up the charts today, thanks to the biotech's strong third-quarter sales of its pain relief medication, ZTlido, which were up 26% from its second quarter and totaled $7.2 million. The company added that late-stage study results for another pain relief treatment, SP-102, will be released by the second quarter of next year. The equity is up 2.4% at $10.86 in response.
SRNE has managed to dig itself out of penny stock territory this year, up over 213% year-to-date, and 496% year-over-year. This impressive rise hasn't come without some volatility, though. The security has seen several sharp spikes, and subsequent pullbacks, mostly due to updates in its experimental COVID-19 treatment. While Sorrento stock is still a ways away from its Aug. 8, five-year high of $19.39, the 120-day moving average served as a floor back in mid-September, while the 10-day looks to be providing more immediate support.
There isn't a great deal of analyst coverage on Sorrento Therapeutics, though the three following the equity call it a "strong buy." What's more, the 12-month consensus price target of $24, is a whopping 120.2% premium to last night's close.
Short sellers, on the other hand, have been piling on the stock, with short interest up 39.9% during the last two reporting periods. Should some of this positive price action convince shorts to change their tune and begin to jump ship, though, it could put some wind at the equity's back. Currently, the 75.11 million shares sold short make up a solid 35.1% of the stock's available float, and would take a little under two days to cover, at its average pace of trading.