Why SRNE Dropped 13% After Hour为什么SRNE后市下跌了13％

In after hour trading Sorrento (SRNE) dropped nearly 13% to 10.40.  The drop is in reaction to what was talk about during the company's conference call. The CEO was telling what has been going on with varies developments.There is no big negative surprises like drugs application rejected or disapproved by FDA or test results are negative. Investors were expecting better progress than what were heard hence the sell off. I think the keys are COVI-TRACE saliva test and COVI-STIX, they are both in EUA stage and should be quick to gain approval. They should be the next stimulus to push the stock up. Who ever bought this stock should have known about these already if they have done any research. The negative reaction in stock price may not be accurate, need to see what comes about tomorrow.

Thanks to SlickRicksPicks@SlickRicksPick2 from twitter, he filed the following report on SRNE conference call. 

1) Market was expecting FDA progress, govt funding, or clinical results, which we didn’t get.

2) Call was used to reset expectations: Ji kept emphasizing that not all products would come to fruition. More careful about definitive dates

3) STI-2020 IND submission should be soon.

4) STI-2020 may be able to combine phase 1/2 and use intranasal dosing.

5) Covitrack antibody test: Appears that all necessary information has been provided to FDA, just waiting on approval.

6) COVI-TRACE saliva test: EUA submitted soon. EUA submitted by Columbia University is separate and only applies to their test in their lab, not mass produced test.

7) COVI-STIX: Ji appeared to be very enthusiastic about this test/EUA submission should be soon.

8)Emphasis that antibody treatments work better against mutations of the virus than vaccines. Many vaccines may run into issues as the virus mutates.

9) Dosing: Sorrento has a key advantage over Regeneron with potency, 8 g vs. 100-200 mg. Mass production implications.

10) Funding: implied that if phase 1 trials of STI-1499 antibody treatment were successful govt would sponsor ph2/3

11) Funding: In active discussions with multiple agencies regarding funding.

12) Funding: Relying on large stake in Cellularity (Ji called it a unicorn) 

13) Ji anticipating large cash flows from Covitrace/Covistix

14) Rest of portfolio: Sofusa testing w/ Enbrel: good results. Scilex: Drug in ph3 with NDA next year. Abivertinib: NDA submission upcoming.

Final thoughts: Informative call, Covid process will simply be longer and more drawn out than market originally expected. As we are seeing with other vaccine trials/antibody trials, this may not be a race to market but a more lengthy trial and error process.

在盘后交易中，Sorrento（SRNE）下跌近13％，至10.40。 下跌是对公司电话会议上谈论的内容的负面反应。 首席执行官在会议上谈论了各种发展动态。其实没有大的负面消息，如药物被FDA拒绝或测试结果为负面等。 投资者期望的进展要好于所听到的所以股票遭到抛售。 我认为现在的关键是COVI-TRACE唾液测试和COVI-STIX，它们都处于EUA申请阶段，应该会较快获得批准。 他们应该是股票的下一个刺激上升因素。其实今天发布的消息 ，在购买了这些股票之前做过任何研究了解的投资人，都应该已经知道了。 股票价格的负面反应可能并不正确，需要观察明天的发展。

感谢Twitter的SlickRicksPicks @ SlickRicksPick2，他提交了有关SRNE电话会议报告如下：

1）市场期望FDA取得进展，政府资助或临床结果，但我们没有得到。

2）会议指在重设期望值：Ji一直强调并非所有产品都会实现。他在进展日期上的谈话谨慎。

3）会尽快提交STI-2020 IND的申请。

4）STI-2020可能能够合并第一及第二期1测试并使用鼻内给药。

5）Covitrack抗体测试：似乎所有等待批准的信息都已提供给FDA。

6）COVI-TRACE唾液测试：EUA即将提交。哥伦比亚大学提交的EUA是单独的，仅适用于他们实验室中的测试，不适用于批量生产的测试。

7）COVI-STIX：Ji对这个测试/ EUA的提交非常热心，应该很快提交。

8）强调抗体治疗比疫苗更有效地抵抗病毒突变。随着病毒变异，许多疫苗可能会出现问题。

9）剂量：索伦托与Regeneron相比具有8克vs. 100-200毫克效价的关键优势。暗示大规模生产。

10）资金：暗示如果STI-1499抗体治疗的1期试验成功，政府将资助第一及第二期测试

11）资金：与多家机构积极讨论资金问题。

12）资金：依靠Cellularity的大量股权（Ji称之为独角兽）

13）Ji预计Covitrace / Covistix会带来大量现金流

14）其余产品：带Enbrel的Sofusa测试：结果良好。 Scilex：明年将在具有NDA的第三期中使用药物。Abivertinib：NDA申请即将提交。

最终的想法：这是信息通报，Covid药物流程将比市场最初预期的更长。正如我们在其他疫苗试验/抗体试验中看到的那样，这可能不是抢先进入市场，而是更长的试验和错误过程。