It’s a very rewarding trading day for investors in SELLAS Life Sciences Group (NASDAQ:SLS) with shares up nearly 150%, making the stock Wall Street’s bull of the day.
Why the excitement? The tiny biotech firm announced positive interim data from its Phase 2b study of trastuzumab (Herceptin) in combination with GM-CSF and nelipepimut-S (NeuVax) in HER2 positive breast cancer patients (node positive and triple negative breast cancer (TNBC)) in the adjuvant setting to prevent recurrences. The prespecified interim analysis, which evaluated efficacy and safety, was conducted and green lighted by an independent Data Safety Monitoring Board (DSMB).
Maxim analyst Jason McCarthy commented, “The NeuVax data is a significant positive for Sellas as it positions the company to potentially advance a second vaccine into late stage development, even a pivotal trial in TNBC. In our view, the data for NeuVax complement the data for Sellas’ lead vaccine candidate GPS, whereby the most effective setting for cancer vaccines to be successful is likely in the setting of preventing recurrence (minimal or no disease) vs. treating large tumors. Meeting with FDA for NeuVax is next.”
As such, McCarthy reiterates a Buy rating on SELLAS Life Sciences shares, with a price target of $13, which represents a potential upside of 50% from where the stock is currently trading. (To watch McCarthy’s track record, click here)
Aside from this rating, SLS has received one other analyst rating today. H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating on SELLAS Life shares, with a price target of $11.00, which represents a potential upside of 27% from where the stock is currently trading.
SELLAS’ lead product candidate, licensed from Memorial Sloan-Kettering Cancer Center (MSKCC), is a late-stage innovative WT1-targeting synthetic heteroclitic epitope immunotherapeutic in development for hematological malignancies and solid tumors characterized by an overexpression of the WT1 (Wilms Tumor Protein) antigen. The WT1 antigen is one of the most widely expressed cancer antigens and ranked by the National Cancer Institute (NCI) as the top priority among cancer antigens for immunotherapy. Traditional approaches have not yet been proven to successfully address the WT1 protein, as WT1 is not druggable with small molecules and is intracellular and inaccessible to antibodies.