SRNE - Sorrento subsidiary executes contract to sell 5 million rapid COVID-19 tests in Mexico

Sorrento Therapeutics (SRNE +3.1%) announces that its subsidiary Sorrento Therapeutics Mexico has executed a contract with a leading distributor to sell and distribute as many as 5 million COVI-STIX tests in the local market. An antigen-based test for rapid detection of COVID-19, COVI-STIX, was granted the emergency use authorization by Mexican regulators, the company disclosed in June. A month later, a local subsidiary was formed to manage its sales operations. Sorrento’s (NASDAQ:SRNE) total revenue surged ~40% YoY during the first nine months of the year to $39.8M. However, despite the brighter prospects during the pandemic, the company shares have lost more than a tenth in value in the year so far. Seeking Alpha Quant Ratings indicated a Very Bearish view for the stock since September, as shown in the diagram below. Author Steven Cress explains why.

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Sorrento subsidiary executes contract to sell 5 million rapid COVID-19 tests in Mexico