SELLAS Life Sciences Group (NASDAQ:SLS) shares are up sharply on the announcement of positive interim data in breast cancer for NeuVax + Herceptin, including patients with triple negative breast cancer (TNBC). The prespecified interim analysis, which evaluated efficacy and safety, was conducted by an independent Data Safety Monitoring Board (DSMB).
In reaction, 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 35% from where the stock is currently trading. (To watch Pantginis’ track record, click here)
Pantginis commented, “We believe that the combination of NeuVax and trastuzumab may present an efficacious regimen as trastuzumab binds HER2 which may then get internalized, processed to peptides, and presented to the NeuVax primed T cells signaling them to attack the tumor cell. We anticipate seeing more detailed data at upcoming medical conferences such as ASCO, with a potential abstract submission by the investigator. Lastly, on the recommendation of the DSMB, SELLAS plans to engage the FDA and EMA to identify the path forward in this particular patient group, which we believe could increase the profile and the emphasis placed on this program. Management has indicated that it is going to be prudent in its decisions with regard to resource allocation for NeuVax, including exploring strategic alternatives, while maintaining its laser focus on its lead asset, galinpepimut-S (GPS).”
“The two primary goals this year are moving GPS into the planned Phase 3 AML study, and initiation of a combination study with Keytruda targeting multiople tumor types, which should result in a broad swath of informative data to drive strategic decisions. Driving our enthusiasm for the upcoming Phase 3 AML study are the clinical data in hand,” the analyst concluded.
Aside from this rating, SLS has received one other analyst rating today. Maxim analyst Jason McCarthy reiterated a Buy rating on SELLAS stock, with a price target of $13, which implies an upside of 43% from current levels.