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Sellas Life Sciences Group Inc (SLS) Gains a Bull as the Drug Maker Finds “Firm Footing in the Immunocology Sandbox”


Sellas Life Sciences Group Inc (NASDAQ:SLS) was already Smarter Analyst’s bull of the day yesterday, having rocketed almost 151% in rapid-fire blast- and today, the stock continues to climb another 4%.

The real star here is Sellas’ breast cancer combination treatment NeuVax + Herceptin, which exhibited positive interim data from a Phase 2b clinical trial.

H.C. Wainwright analyst Joseph Pantginis recognizes “a new name for investors to get their arm around” here, particularly considering Phase 3 GPS immunotherapy lead candidate galinpepimut-S, primed for a Phase 3 trial.

Cheering SLS’ “firm footing in the immunooncology sandbox,” the analyst is out initiating bullish coverage on the stock, setting a Buy rating with a price target of $11, which implies a 22% upside from current levels. (To watch Pantginis’ track record, click here)

For context, on back of a reverse merger with Galena to offer a publicly traded channel to put lead asset GPS at the forefront, SLS started trading January 2nd of this year.

“Based on clinical data in hand […] we believe the company is positioned well for success in its lead targeted indication of AML, though we do highlight the continuing risks (real and perceived) around cancer vaccine approaches. Overall, since the company is a new entrant to the public markets, we believe a value disconnect currently exists between clinical data in hand and projected catalysts,” cheers Pantginis.

Keep in mind, the company’s cancer vaccine “has already generated encouraging clinical data in several tumor indications,” highlights the analyst, who adds, “The lead indication, AML, has generated positive Phase 2 data showing median overall survival of 35.3 months in patients or older, which compares favorably to the expected survival of approximately 12 months using current standard of care therapy (published Blood Adv. 2018).”

Up next: Pantginis shines light on GPS striding forward into a pivotal Phase 3 trial in AMD down the line in 2018, assuming sufficient funding is in play; a combination trial with Keytruda kickstarting potentially in the first half of this year, which would target various tumor types- and “should result in a broad swath of informative data to drive strategic decisions.”

According to TipRanks analytics, initial word on the Street goes to the bulls: all 3 analysts polled in the last 12 months unanimously rate a Buy on this biotech stock. The 12-month average price target stands at $12.00, marking a 33% upside from where the stock is currently trading.