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S&P 500   5,137.08 (+0.80%)
DOW   39,087.38 (+0.23%)
QQQ   445.61 (+1.51%)
AAPL   179.66 (-0.60%)
MSFT   415.39 (+0.42%)
META   502.32 (+2.49%)
GOOGL   137.14 (-0.95%)
AMZN   178.22 (+0.83%)
TSLA   202.64 (+0.38%)
NVDA   822.79 (+4.00%)
NIO   5.78 (+0.52%)
AMD   202.64 (+5.25%)
BABA   74.62 (+0.80%)
T   16.98 (+0.30%)
F   12.45 (+0.08%)
MU   95.15 (+5.01%)
CGC   3.21 (-2.43%)
GE   158.65 (+1.12%)
DIS   111.95 (+0.33%)
AMC   4.36 (+0.93%)
PFE   26.59 (+0.11%)
PYPL   60.54 (+0.33%)
XOM   105.84 (+1.26%)
S&P 500   5,137.08 (+0.80%)
DOW   39,087.38 (+0.23%)
QQQ   445.61 (+1.51%)
AAPL   179.66 (-0.60%)
MSFT   415.39 (+0.42%)
META   502.32 (+2.49%)
GOOGL   137.14 (-0.95%)
AMZN   178.22 (+0.83%)
TSLA   202.64 (+0.38%)
NVDA   822.79 (+4.00%)
NIO   5.78 (+0.52%)
AMD   202.64 (+5.25%)
BABA   74.62 (+0.80%)
T   16.98 (+0.30%)
F   12.45 (+0.08%)
MU   95.15 (+5.01%)
CGC   3.21 (-2.43%)
GE   158.65 (+1.12%)
DIS   111.95 (+0.33%)
AMC   4.36 (+0.93%)
PFE   26.59 (+0.11%)
PYPL   60.54 (+0.33%)
XOM   105.84 (+1.26%)
S&P 500   5,137.08 (+0.80%)
DOW   39,087.38 (+0.23%)
QQQ   445.61 (+1.51%)
AAPL   179.66 (-0.60%)
MSFT   415.39 (+0.42%)
META   502.32 (+2.49%)
GOOGL   137.14 (-0.95%)
AMZN   178.22 (+0.83%)
TSLA   202.64 (+0.38%)
NVDA   822.79 (+4.00%)
NIO   5.78 (+0.52%)
AMD   202.64 (+5.25%)
BABA   74.62 (+0.80%)
T   16.98 (+0.30%)
F   12.45 (+0.08%)
MU   95.15 (+5.01%)
CGC   3.21 (-2.43%)
GE   158.65 (+1.12%)
DIS   111.95 (+0.33%)
AMC   4.36 (+0.93%)
PFE   26.59 (+0.11%)
PYPL   60.54 (+0.33%)
XOM   105.84 (+1.26%)

Sorrento Therapeutics, Scilex: 2 Hot Pharma Stocks On the Move

Sorrento Therapeutics, Scilex: 2 Hot Pharma Stocks On the Move

Key Points

  • Sorrento Therapeutics is on the move following preliminary results from Scilex. 
  • Scilex is Sorrento Therapeutics' publicly traded subsidiary. 
  • The company's 1st product to market is making money. 
  • 5 stocks we like better than Sorrento Therapeutics

A pair of hot pharma stocks are on the move and could become the next buzz on Wall Street. Sorrento Therapeutics NASDAQ: SRNE, through its subsidiary Scilex Holding Company NASDAQ: SCLX, is making money. That’s a big deal for a company whose stock just hit penny-stock levels and is at risk of NASDAQ delisting.

What this means for investors is cash flow, and that is always good news. Assuming the momentum continues to build, shares of Sorrento Therapeutics and Scilex could sustain a rally well into the back half of the year. 

What Is The News With Sorrento Therapeutics?

Sorrento Therapeutics is a clinical-stage biopharma company that operates in 2 segments. These are Sorrento Therapeutics and Scilex which is also a publicly listed company.

Scilex is in the business of non-opioid pain relief and has recently had a product hit the market. The news here is that sales in 2022 were much better than expected. The company released its preliminary results, which expect 2022 net revenue to come in the range of $37 to $42 million.

That’s good for a gain of 18% over last year, and it could be better if the accounts receivable are caught up before the accounting is finished. 

Two Hot Pharma Stocks That Are On The Move 

Scilex came to market only a few months ago. The company IPOd via a reverse merger with SPAC Vickers Vantage Corp in November 2022, and the action has been less than bullish.

The revenue news has the stock on the move, but a reversal could be in play. The risk for investors in Silex is resistance at the $1.40 level, which could be fierce. Assuming the company’s sales can gain traction in 2023 as they did in 2022, the ultimate trajectory for the stock should be upward. 

Catalysts Are In The Works For Scilex 

Scilex has not 1 but 2 approved treatments. Its product Gloperba is an oral solution for the treatment of gout. Gout is a debilitating condition and one that is fueling a growth market. The current outlook is for a CAGR near 8.5% through 2030, which could be a cautious estimate. Scilex plans to launch the treatment in the US in 2023, and other candidates are in the pipeline. The 3 most noteworthy include 2 treatments for lower back pain/sciatica and 1 for fibromyalgia. 


No analysts are covering Scilex, showing up on Marketbeat.com’s tracking tools, but at least 2 are covering Sorrento Therapeutics. They have the stock pegged at a Moderate Buy with a price target at least 300% above the current price action. The range is quite wide, but the low end is at $5, and the consensus is near $12.50, which implies more than a 1000% upside for investors. Sorrento also has a robust pipeline of products, including 5 on the brink of FDA approval. If even one makes it to the market, it will be a game-changing event for the company and the stock price. 

The Technical Outlook: Sorrento Might Have Bottomed 

Shares of Sorrento Therapeutics cratered in the wake of the IPO under short-selling pressure. Now the stock appears to be at a bottom that could turn into a reversal, given the latest news. Assuming the company and/or its subsidiary can follow through with another win, upward price movement is assured. Until then, price action will be driven by the latest news and may be capped near the $1.80 or $3.00 level. Two Hot Pharma Stocks That Are On The Move 

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Should you invest $1,000 in Sorrento Therapeutics right now?

Before you consider Sorrento Therapeutics, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Sorrento Therapeutics wasn't on the list.

While Sorrento Therapeutics currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Scilex (SCLX)
1.6587 of 5 stars
$1.34-41.0%N/AN/ABuy$8.00
Sorrento Therapeutics (SRNE)
0.5623 of 5 stars
$0.03flatN/AN/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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