SONN Stock News: Sonnet BioTherapeutics plummets by nearly 20% after medical community rebukes FDA

NASDA:SONN shares were sold off on Tuesday after a near 70% spike to start the week.
Scientists, World Health Organization, voice scepticism about the proficiency of convalescent plasma therapy to treat COVID-19.

Stocks Reporter FXStreet

It has been an interesting start to the week for investors of Sonnet BioTherapeutics (NASDAQ:SONN). The announcement by the FDA over the weekend about a shift in focus towards convalescent plasma therapies as a viable coronavirus treatment sent shockwaves through the biotech industry. Sonnet shares were up nearly 70% pre-market on Monday and peaked at $4.32 before crashing back down to earth on Tuesday. The stock price of Sonnet has dropped by over 70% during the past year and is well over 90% below its 52-week high of $54.60.

The FDA is under fire after echoing President Donald Trump’s sentient that convalescent plasma therapy would save countless lives. Within 24 hours of the announcement, members of the scientific community, including the chief scientist for the World Health Organization questioned the FDA and even went as far as to say that the claims were “very low-quality evidence” and that convalescent plasma transfusion for COVID-19 is still “an experimental treatment”. Even Dr. Anthony Fauci – a member of the White House’s coronavirus task force – had his own reservations about how accurate the treatment statistics that the FDA provided truly are.

SONN Stock Price

While the rebuking of the FDA’s claims of the efficacy of convalescent plasma-based treatments should not be ignored, it may not signal the end of Sonnet’s bid to produce an effective coronavirus treatment. Industry rivals ADMA Biologics Inc (NASDAQ:ADMA) and T2 Biosystems Inc (NASDAQ:TTOO) were also in the red on Tuesday – making it clear that investors are abandoning the plasma therapy industry almost as quickly as they entered it.

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