H.C. Wainwright Starts Sorrento Therapeutics (SRNE) at Buy

H.C. Wainwright initiated coverage on Sorrento Therapeutics (NASDAQ: SRNE) with a Buy rating and a price target of $11.00.

Analyst Swayampakula Ramakanth said "The lead product, Cynviloq, a third generation formulation of paclitaxel, could potentially launch in 1H16. Resiniferatoxin (RTX), a TRPV1 agonist with encouraging early-stage clinical data in treating cancer pain, could enter the market in 2018. Albeit grants and service sales make up current revenues, we expect Cynviloq and RTX to become the growth drivers in the long-term. We expect Cynviloq and RTX to generate risk-adjusted sales of $259 million by 2025E. Additionally, Sorrento has developed a large, proprietary fully-human antibody library which, along with recently acquired linker technologies, could yield antibody and antibody-drug conjugates (ADCs) that could potentially provide upside."

"Sorrento plans to create an Animal Health subsidiary, Ark Animal Therapeutics, and we believe about 30% of the entity could be divested in an IPO, generating additional shareholder value. Considering the revenue potential from Cynviloq and RTX, upside from the antibody programs, and the potential for positive operating income by 2108, we believe the shares of Sorrento are undervalued," he added.

For an analyst ratings summary and ratings history on Sorrento Therapeutics click here. For more ratings news on Sorrento Therapeutics click here.

Shares of Sorrento Therapeutics closed at $4.52 yesterday.

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