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A journey of a thousand miles begins with a single step, and a big one in this case. On Monday, Sorrento Therapeutics (SRNE) announced the FDA had given it the go ahead to initiate a Phase 2 trial of Abivertinib in COVID-19 patients with moderate to severe lung-related symptoms.

Abivertinib - a small molecule tyrosine kinase inhibitor - has already been studied in over 600 patients across the globe for several oncologic indications, with it able to target multiple cytokines at the same time. Sorrento is confident Abivertinib’s potent effect can help it prevent the "cytokine storm," in which the body attacks its own cells on account of the immune system’s overreaction, in COVID-19 patients.

Dawson James analyst Jason Kolbert believes Sorrento is on track to create the perfect “cocktail” capable of providing “100% inhibition.”

“[The] news is consistent with the company’s goal to generate an antibody cocktail against SARS-CoV-2 coronavirus infection. As a cocktail, the product could remain effective even if virus mutations occur. Through the U.S.'s Project Warp Speed, it's possible we could see this cocktail move rapidly to commercialization,” the analyst said.

Sorrento has multiple COVID-19 programs in various stages of development. These include antibody STI-1499 (COVI-SHIELD), which also recently demonstrated promising in vitro results. The drug was able to completely block the SARS-CoV-2 virus, and is set to be the first antibody in the antibody cocktail Sorrento is working on.

The company is also developing COVI-TRACK, a COVID-19 antibody testing solution, with it currently awaiting Emergency Use Authorization (EUA). Sorrento has already secured the means to produce up to five million test kits per month, which will be distributed to clinical sites across the U.S. once authorization is received.

Accordingly, Kolbert keeps a Buy rating on Sorrento, along with a $24 price target. From current levels, there’s massive potential upside of 223% should the analyst's thesis play out over the next year. (To watch Kolbert’s track record, click here)

Overall, it has been relatively quiet when it comes to other analyst activity. In the last three months, only 2 analysts have issued ratings. However, as they were both Buys, the word on the Street is that SRNE is a Moderate Buy. This is accompanied by a $24 average price target – the same as Kolbert’s. (See Sorrento stock-price forecast on TipRanks)

To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Image source: The Motley Fool.

Image source: The Motley Fool.

Ever the voice of caution through the current pandemic, Dr. Anthony Fauci on Friday dampened enthusiasm that an effective and approved coronavirus vaccine is only months away.

What happened Investors sold off shares of several coronavirus vaccine-related stocks on Friday as lawmakers ramp up pressure on drugmakers.

Image source: The Motley Fool.

Image source: The Motley Fool.

Image source: The Motley Fool.

Image source: The Motley Fool.

What happened Shares of Advanced Micro Devices (NASDAQ: AMD) jumped 16.5% on Friday after rival Intel (NASDAQ: INTC) said it would delay the launch of its newest processor chips.

What happened Shares of Boston Beer (NYSE: SAM) surged more than 26% to a new closing high of $828.34 on Thursday, after the alcoholic-beverage maker delivered blockbuster second-quarter results.

The S&P 500 Index (SNPINDEX: ^GSPC) closed down 20 points, or 0.62%, on July 24, a second-straight sell-off to close the week lower than it started for the first time in almost a month. Today's decline was driven by worries that tensions between the U.S. and China are risin

Tiny biopharmaceutical company Milestone Pharmaceuticals (MIST) had a big day Thursday, first announcing the completion of one study (NODE-301) and the continuation of a second (NODE-301B, now to be renamed the "RAPID study"), that will, together, support a future New Drug Application submission to the FDA for its etripamil  cardiovascular drug -- then announcing a $25 million private placement (a "PIPE") to raise cash to continue its work.

Milestone further advised that it has met with the FDA and agreed on "an efficient path to registration for etripamil which eliminates the need to start a new Phase 3 study." Specifically, based on data from the NODE-301 study (and partially on the RAPID study as well), the FDA has agreed to modify how the RAPID study proceeds going forward. In particular, the latter study will now permit Milestone "to administer an additional dose of study drug 10 minutes after the first dose if [patients] still experience signs and symptoms of a supraventricular tachycardia (SVT) episode."

The stock nearly tripled in value on the news -- up 167% by day's end after retreating from its highs.

How significant are these two studies? In a note discussing Milestone's announcement, Cowen analyst Ritu Baral reminds that Milestone's etripamil  drug is an "intranasal novel calcium channel blocker" designed to treat paroxysmal supraventricular tachycardia, a type of heart arrhythmia.

The 5-star analyst sees the FDA's decision as a bit of a surprise -- but a good one. For one thing, she notes that the decision to allow Milestone to administer additional doses to a single patient "speaks highly of the drug's safety profile from '301." (Apparently, patients tolerate the drug quite well). For another, the chance that these additional doses will improve the drug's effectiveness "allows for even better possible clinical efficacy from topline data." Basically, if the first 70mg etripamil dose doesn't do the trick, Milestone will be allowed to administer a second dose 10 minutes later -- giving the drug a second chance to slow the patient's heartbeat down to a normal rate and achieve a successful outcome.

In the analyst's opinion, this leeway that the FDA is allowing Milestone means "the RAPID trial is well set up for success" when data comes out in late 2021 or early 2022, and "majorly derisks the program."

Financially speaking, Baral is also pleased with the PIPE. At estimated burn rates, the extra $25 million that Milestone will be raising should suffice to fund Milestone's research "into 2Q22," says the analyst, and therefore "past topline RAPID data." In short, it eliminates funding concerns throughout the clinical process (although additional capital raises may still take place if desirable).

Mind you, none of this means that Milestone is going to become a profitable enterprise in the immediate future. While the developments are positive, Baral still expects to see Milestone lose $1.83 per share this year (albeit that's half what it lost last year), then perhaps lose $2.07 per share more next year.

Regardless, the analyst is optimistic about the progress, assigns Milestone stock an "outperform" rating, and is doubling her price target to $12 a share. (To watch Baral's track record, click here)

Overall, MIST holds a Moderate Buy rating from the analyst consensus, based on 2 “buy” ratings and 1 “hold.” Shares are selling for $8.29, and the average price target of $13.5 implies a healthy 64% upside.

To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

(RTTNews) - The Canadian stock market slipped a bit deeper into the red after a weak start, and despite recovering some lost ground as the day progressed, ended the session modestly lower on Friday.

The latest installments of two massively popular film franchises will debut later than originally scheduled. Disney (NYSE: DIS) announced Thursday that it is pushing back the release dates of a clutch of features, including all upcoming installments in the popular Star Wars and

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Baidu Inc. (BIDU) closed the most recent trading day at $119.02, moving -1.72% from the previous trading session. This move lagged the S&P 500's daily loss of 0.62%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.94%.

3M (MMM) closed the most recent trading day at $159.84, moving +0.35% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.62%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.94%.

Crown Castle (CCI) closed the most recent trading day at $166.70, moving -0.04% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.62%. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.94%.