Sorrento Product Creates Industry Buzz, But Investors Bid Stock Down

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Monday, January 14, 2019

It may be a sign of unease in the markets in general, and the pharmaceutical industry in particular, but Monday’s tidings regarding a subsidiary of Sorrento Therapeutics, Inc. (NASDAQ:SRNE), proved a good-news-bad-news story. 

Scilex Pharmaceuticals announced that Express Scripts has added ZTlido® (lidocaine topical system) 1.8% to its commercial national formularies representing nearly 30 million lives.  ZTLIDO is indicated for relief of pain associated with postherpetic neuralgia (PHN), also referred to as post-shingles pain. Company official Mike Sweeting said “Scilex worked diligently with Express Scripts to ensure that patients and providers will have access to ZTLIDO, a non-opioid, non-abusive treatment option for post-herpetic neuralgia.

“Express Scripts’ decision to include ZTLIDO on its national formularies in recognition of the benefit it can provide to patients with post-herpetic neuralgia, or PHN, is an important milestone for Scilex." 

Research has shown that only 8% of patients are started on a lidocaine patch when diagnosed with PHN. In contrast, more than one in five patients (22%) is started on an opioid when diagnosed with PHN, although opioids are not specifically indicated for PHN. 

ZTLIDO was approved by the U.S. Food and Drug Administration (FDA) last February for relief of pain associated with PHN.

The not-so-good news? While Sorrento’s stock betrayed fairly strong volume Monday, with 551,000 shares trading, the price was down 11 cents, or 4.5%, in the session’s last hour, to an unsatisfying $2.36.

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