When Sorrento (NASDAQ:SRNE) finally took a step back from its claims that it had a COVID-19 cure, investors should have headed for the exit. The company clearly benefits from any hype lifting the stock. It offered $250 million worth of stock on April 27.
Amarin (NASDAQ:AMRN), whose stock fell from a $26 high to as low as $3.95, is in trouble because of generic competition. Hikma received FDA approval for its generic Vascepa. The company teamed up with HLS Therapeutics to “investigate the effects of Vascepa against Covid-19.
Chances are low that it demonstrates any benefits to patients. The stock did not react much after the news.
Dynavax (NASDAQ:DVAX), whose market cap is barely $500 million, claimed that it would start a Phase 1 clinical trial as early as this coming July. But the timing of the claim should raise suspicion. The company initiated a public offering of its stock on May 21.
Similar to the other firms mentioned, DVAX is unlikely to come up with a treatment for Covid-19. Even if it has something promising, it will need more money down the road to fund the further studies. By then, other drug companies will likely have a treatment.
Investors should avoid AMRN, SRNE, and DVAX stock.
