Why Sorrento Therapeutics Stock Is Sinking Today

Shares of Sorrento Therapeutics (NASDAQ: SRNE) are sinking 16.2% as of 11:02 a.m. EDT on Monday. Two factors appear to be primarily behind the decline. On Sunday, the U.S. Food and Drug Administration (FDA) granted Emergency Use Authorization (EUA) to convalescent plasma in treating COVID-19. Also, the Financial Times reported on Sunday that the Trump administration is considering fast-tracking AstraZeneca's (NYSE: AZN) COVID-19 vaccine candidate to make it available prior to the U.S. election in November.

Why would the FDA's EUA for convalescent plasma and a potentially faster green light for AstraZeneca's COVID-19 vaccine candidate affect Sorrento? The company is developing its own COVID-19 therapeutic and vaccine candidates. Any good news for rivals could be seen as bad news for Sorrento.

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Source Fool.com