Why Sorrento Therapeutics Stock Is Jumping Today
Shares of small-cap biotech Sorrento Therapeutics (NASDAQ: SRNE) were up by a noteworthy 13.3% on heavy trading volume as of 11:24 a.m. ET Tuesday. What's particularly interesting about this double-digit percentage move is that the company hasn't announced any significant material events in about a month.
So what's going on? Sorrento's shares were some of the hardest hit in its industry during the first half of 2022. The biotech stock shed an eye-catching 56% of its value amid that downturn. In that context, Tuesday's uptick appears to be the result of bargain hunters positioning for a possible rally among small-cap biotechs in the second half of the year.
Why are some investors growing more optimistic that the worst might be over for small-cap biotech stocks? One possibility is that their valuations have gotten so low that big pharma players and blue-chip biotechs might start to scoop up companies with promising pipelines at discounted prices. Sorrento, with its broad pipeline of immunotherapies, cancer drugs, and COVID-related product candidates, might be an attractive takeover target.
Source Fool.com
