Osteoarthritis is a degenerative joint disease which affects millions of people across the globe, and according to Wiseguy Research, it is a market that could be worth over $10 billion by 2025.
Sorrento Therapeutics (SRNE) has been eyeing this opportunity and is now one step closer to getting its osteoarthritis candidate through the lucrative door.
On Tuesday, Sorrento announced that the FDA has given the green light for the company to begin the Phase 2 testing of its pain management candidate resiniferatoxin (RTX) for the treatment of moderate-to-severe osteoarthritis of the knee pain (OAK).
The Phase 2 study will evaluate the drug’s effectiveness and safety profile across several dose cohorts of RTX. The first Phase 2 study will be to determine the recommended Phase 3 dose.
The mid-stage trial follows a successful Phase 1b study, which showed that after 12 weeks, RTX’s performance surpassed what is normally considered enough to support regulatory approval.
Due to the early-stage success, Sorrento will test RTX against an active comparator (injectable corticosteroid) and should RTX show it is more effective than a commonly used drug, it could result in accelerated international registrations.
H.C. Wainwright’s Ram Selvaraju has been following the treatment’s progress and thinks RTX has potential due to several reasons, including: “(1) evidence that it is effective even in the context of intractable pain, which is impervious to treatment with existing standard-of-care drugs; (2) its rapid onset as well as sustained clinical impact, with duration of effect measurable in months; and (3) the fact that RTX—unlike the most effective approved therapies available for pain management today—is not an opioid-based agent, thus alleviating addiction and abuse concerns.”
The analyst also believes RTX could potentially treat “multiple pain indications beyond OAK.” Selvaraju thinks RTX could enter Phase 3 testing in 2022 with a possible top-line data readout by the end of 2023.
So, good news for Sorrento and possibly OAK patients, but what is the implication for investors? Selvaraju reiterated a Buy on SRNE shares, while his $30 price target implies the stock could stride forward by 216% over the next 12 months. (To watch Selvaraju’s track record, click here)
No other analysts have recently updated their SRNE models, leaving Selvaraju’s review as the sole one on record. (See SRNE stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
