Columbus Day Perspectives generally surround the market's continuation on the upside fairly dramatically led by the 'super-cap' usual suspects, which is considered a blow-off by some. However breadth was pretty good, and my suspicion is that after perhaps some consolidation in the morning, we go up a bit more, especially if Oil rebounds after retreating post-Hurricane Delta.

Other than that, there was focus on the Judicial Hearing in Washington, as the focus shifted along party lines generally, as would be expected. Tuesday is to me the big day of the week, not just because of Apple's (AAPL) iPhone 12 'reveal' of course, but as I'll be visiting LightPath (LPTH) concurrently, then later a 'presentation' coming after the Close, from Sorrento (SRNE), which is more important than outlining a commitment to the future (of COVID-19 solutions and more..).

It's 'get your ducks in a row' time in San Diego..

Although we know with antibodies how the focus went to vaccines, I just have to ask: where is Government funding and an EUA for testing"? As investors if they're not heard it, I tell Sorrento they have plenty in 'petri dishes', even one or two FDA go-aheads for months about which we've never heard details. It's a cute thing for some to say it's 'totally secret', but nobody else's were, so that does ring hollow. That makes the Presentation important even as they outline how 'programs' they're working on are synergistic (and they are). However, I'll say unless there is 'surprise' news of achievement, Sorrento needs to stop spending money on more programs and instead focus on taking any of the existing COVID-solutions toward rapid approval and commercialization.

With a growth hospitalization status in the US (and world) again, the virus isn't taking time off, and very much is still a threat. So Sorrento.. if they've got what they've proclaimed.. should finally capitalize on it. It's been enough time.

Yes, Sorrento's clearly working on 'life-saving' treatments (and tests), plus a very important non-opioid pain relief injection. Yes the focus will be on COVID, I'm sure, after all they headlined an updated 'program guide' with STI-1499.

Its position at 'top-of-topics' says something. It's more interesting since weeks passed, since hospitalized patient recruiting is said to have begun at Temple Univ. in Philadelphia. We have no data, takeaways or clue other than that, but also realize it could be straight-forward to migrate trials to Phase 2 or 3, then concurrently start trials to treat earlier-stage 'outpatient' COVID patients.

I'm surprised their trial is never discussed (recently) in media, and that it never is pointed-out (though I have) that Regeneron & Lilly trials are symptomatic patients, not hospitalized patients (except for the President). So 'if' Sorrento's STI-1499 has even reasonable efficacy (40-60% COVID elimination in what are advanced sick patients in hospital trials), it's reasonable to presume the same antibody administered earlier in the course of disease or more potent versions for that matter, could have even better results. Why mention it now?

I suspect that 'if' STI-1499 was favorably-tolerated with decent efficacy, they'll move to 'wider' trials before patients get very sick, and that's where it may well differentiate itself from the others. Because the trial 'dosage' is a tiny fraction of the Regeneron dose given President Trump, a larger number of patients in the future could be treated from a particular amount of antibody material that a bioreactor (that's what they're called) can produce. That would not only be a great development for Sorrento, easier on the patients, but alleviate what the good Dr. Gottlieb worries about: inability of having antibodies available in any quantity for the number of people that will likely demand them this Winter.

Executive Summary:

• The S&P is flying but mostly super-caps, they might consolidate a bit then higher, particularly if Apple's iPhone reveal precedes temporary selling.

• I just heard (it's confirmed) that Johnson & Johnson (JNJ) vaccine trials were halted, apparently due to illness (side effects) in one trial participant, this has been more the experience with vaccines than antibodies.

• The President has tested negative for COVID, which is exactly what you'd want to expect after a few days with an effective antibody regimen.

• Recall what Dr. Ji of Sorrento got criticized for months ago, which was a statement of their antibody being a 'cure', which he described as clearing active disease within a week, then a week later a negative test, appears he was correct, now the mad genius needs to commercialize some of it.

• That word 'cure', for which he was roundly harassed about, allowed our additional buys around the 6 level (should be nearly double about now).

• If STI-1499 shows efficacy (and they can state that tomorrow, who knows) there is more that can thrust the shares to an even-higher level.

• After today's close, Sorrento announced an additional 'rescue therapy', in the form of a Mesenchymal Stem Cell Program .. and surprise, it's been Cleared for a Phase 1 Trial by the FDA as far as I interpret the statement.

• We've been interested in Stem Cells with regard to oncology of course, but also COVID, via both Israeli and Cleveland efforts (Athersys), so this is not an evolution of Sorrento's prior studies given FDA Trial go-ahead, it's a deal (presumably for shares, thus not really dilutive as value received).

• This is a license deal from Personalized Stem Cells, Inc., a privately-held San Diego biotech that normally sells stem cells only to FDA approved as well as patient trials, Sorrento in a single-arm, will treat patients suffering ARDS (respiratory distress syndrome) contrasting outcomes in treated vs. patients not receiving stem-cells, (the founder of the Stem Cell company, a small operation, says he's proud to have this move 'to the next level').

• Interestingly, those stem-cells were intended for 'osteoarthritis' knee-pain patients, thus may also complement Sorrento's non-opioid pain reliever.

• This FDA-sanctioned trial was already set-up for a hospital in Fresno California, but not commenced, however it probably will stay there, if not these doctors are well-connected in San Diego's medical community.

• Sorrento is up about 30 cents in aftermarket trade, having nursed SRNE through thick-and-thin in recent months, I see no reason to chase upside, we'll leave that for skeptics and short-sellers.

• We will caution in-fact, that even with good news tomorrow, it might see profit-taking, then with 'real' progress beyond trials, higher potential.

In-sum: the market is high but aside minor consolidation, S&P (SPX) holds together although is sensitive to disruption related to stimulus moves or so on. Most of the leadership continues from the usual big-cap suspects on the NASDAQ (NDX).