SRNE Stock – Sorrento (SRNE) to Report Q4 Earnings: What’s in the Cards?
Sorrento Therapeutics, Inc. SRNE will provide updates on revenues from ZTlido and its pipeline developments when it reports fourth-quarter 2020 results.
The company has a negative earnings surprise history, surpassing expectations in one of the trailing four quarters while missing in two and matching in the remaining one. The average negative earnings surprise was 13.42%. In the last reported quarter, the company delivered a negative earnings surprise of 32%.
Shares of Sorrento have surged 417.6% in the past year compared with the industry’s growth of 12.9%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Sorrento’s revenues in the fourth quarter are likely to have been driven by higher contract manufacturing service revenues.
Revenues in the Scilex segment increased in the third quarter and the trend is expected to continue in the fourth quarter due to an anticipated increase in product sales of ZTlido.
The company is likely to incur net losses in the fourth quarter due to higher research and development costs (R&D) for its pipeline development.
The company’s COVID-19 pipeline advanced rapidly in the quarter. It is conducting preclinical development of multiple therapeutic, vaccine and diagnostic candidates for the potential treatment, prevention and detection of COVID-19.
In November 2020, SmartPharm Therapeutics, Inc., a wholly-owned subsidiary of Sorrento wasawarded a contract by the Defense Advanced Research Projects Agency (DARPA) co-funded by the Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND) to develop a rapid countermeasure to COVID-19. The contract would provide SmartPharm up to $34 million for development through phase II clinical studies of a gene-encoded antibody (“Gene MAb”) that could enable rapid protection from and/or treatment of SARS-CoV-2 infection and COVID-19. Sorrento will seek further funding in support of the COVID Gene MAb program toward an EUA (emergency use authorization) approval and large-scale manufacturing pending successful clinical studies.
In November 2020, the company filedan investigational new drug application (IND) for intranasal (IN) COVI-DROPS (STI-2099) to study the safety and pharmacokinetics in both healthy volunteers and patients with mild COVID-19.
In December 2020, Sorrento Therapeutics submitteda marketing authorization application (MAA) in Mexico to Comisión Federal para la Protección contra Riesgos Sanitarios (COFEPRIS), the health regulatory authority for Mexico, for its COVI-STIX rapid diagnostic test for the detection of the SARS-CoV-2 virus nucleocapsid antigen in nasal samples of patients.
In December, the company also submittedan EUA application to the FDA for its COVI-STIX rapid diagnostic test for the detection of the SARS-CoV-2 virus nucleocapsid antigen in nasal samples of patients.
The company also received an FDA acceptance of its IND application for its phase I studies on intravenous (IV) STI-2020 (COVI-AMG). The studies will evaluate the safety, pharmacokinetics and efficacy of a single injection of STI-2020 in healthy volunteers and outpatient COVID-19 patients with mild symptoms.
We expect the company to provide updates on its COVID-related pipeline candidates in the fourth quarter.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Sorrento this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
Earnings ESP: Sorrento has an Earnings ESP of 0.00%. Both the Zacks Consensus Estimate andtheMost Accurate Estimate stood at a loss of 23 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some biotech stocks that have the right mix of elements to beat on earnings this time around:
Castle Biosciences Inc. CSTL has an Earnings ESP of +31.82 % and a Zacks Rank #3.
ADMA Biologics, Inc. ADMA has an Earnings ESP of +5.88 % and a Zacks Rank #2.
Atea Pharmaceuticals Inc. AVIR has an Earnings ESP of +279.59% and a Zacks Rank #2.
Sorrento Therapeutics, Inc. price and Consensus
Sorrento Therapeutics, Inc. price-consensus-chart | Sorrento Therapeutics, Inc. Quote
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