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What To Know About The Move In Sonnet BioTherapeutics

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What To Know About The Move In Sonnet BioTherapeutics

Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) were down 11% on Wednesday after skyrocketing 56.9% on Tuesday on COVID-19-related news.

What Happened

On Monday, Altru Institute’s Altru Global Virus Project published a report on Sonnet suggesting the company’s technology may be valuable in combating COVID-19.

Sonnet’s core technology, Fully Human Albumin Binding, is a delivery mechanism designed for cancer that can also be used for viruses.

“They have invented and developed an ingenious approach that converts endogenous albumin into a drug-loaded and/or immune stimulatory Trojan Horse that is taken up by unknowing cancer cells, leading to their destruction,” Tom Malcom, PhD, CEO of biotech start-up Iron Hills Bioengineering, said in a press release.

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Why It’s Important

Any company developing COVID-19 solutions, from vaccines to treatments to improved testing and tracking methods, stands to make a fortune. With billions of dollars on the line, it’s understandable why the share price of a $65 million company like Sonnet would jump on the news.

However, given there are thousands of companies with nearly unlimited resources all looking for the best treatment for the coronavirus, reality seems to be setting in a bit for Sonnet investors. After initially spiking from under $5 to above $14 on Tuesday morning, Sonnet has been drifting lower ever since.

Benzinga’s Take

Following a merger with Chanticleer Holdings and a 26-to-1 reverse stock split that took place on April 2, Bonnet currently has a minuscule float of only 1.5 million shares, according to Yahoo. With a float that tiny, all it takes is a relatively small catalyst such as this week’s news to trigger enough buying volume to really move the stock.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

 

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