Sorrento Therapeutics Shares Move Down On Coronavirus Test Competition

Sorrento Therapeutics Inc SRNE shares were moving to the downside Monday.

What Happened: The FDA announced Saturday that it has issued emergency use authorization to Yale University's SalivaDirect COVID-19 diagnostic test, which uses a method to process saliva samples for diagnosing COVID-19 infection.

Sorrento shares found strong upward momentum in late July and in early August after the company said it has entered into an agreement with Columbia University to license a rapid saliva test for SARS-CoV-2.

The shares gave back some of the gains after short seller Hindenburg called the announcement a stock-pumping initiative last week. 

Why It's Important: With much of the market value added to Sorrento's stock coming on the back of announcements regarding COVID-19 antibody treatment, vaccine and diagnostic test sin development, Yale University's breakthrough is likely to be a setback for the stock.

The stock could test the levels it traded at ahead of the announcement of the licensing deal with Columbia University.

SRNE Price Action: Sorrento shares were down 5.63% at $11.74 at last check Monday. 

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