Why Sorrento Therapeutics Stock Fell Today

Shares of Sorrento Therapeutics (NASDAQ: SRNE) declined on Monday after a new competing saliva-based COVID-19 test received emergency use authorization from the Food and Drug Administration. By the close of trading, Sorrento's stock was down 3% after falling as much as 18% earlier in the day.

Sorrento's stock price rose sharply in late July and early August after the biopharmaceutical company signed a licensing agreement with Columbia University for a saliva-based rapid diagnostic test that detects the novel coronavirus in as little as 30 minutes. Sorrento believed that, if approved by regulators, the test could be used in a wide variety of settings, such as airports and sporting events, as well as for at-home testing.

Sorrento Therapeutics' stock fell as a new competitor emerged in the coronavirus testing market. Image source: Getty Images.

Source Fool.com