Selecta Biosciences Swings to a Q1 Loss; Shares Fall 2%


Shares of Selecta Biosciences (SELB) fell 2.3% on May 13 to close at $2.93 after the biotechnology company reported a loss in the first quarter. Meanwhile, revenues topped analysts’ expectations.

Net loss for Q1 2021 came in at $24.6 million or $0.22 per share, compared to a net loss of $19.6 million or $0.21 per share in Q1 2020. Analysts were expecting the company to report a loss of $0.12 per share.

Revenue recorded in Q1 was $11.1 million, which surpassed analysts’ expectations of $7.52 million. Markedly, there was no revenue recognized in Q1 2020.

Research and development expenses decreased 11.6% year-over-year to $13.0 million, while general and administrative costs increased 26.8% to $5.2 million. (See Selecta Biosciences stock analysis on TipRanks)

Selecta CEO Carsten Brunn said, “We regained exclusive rights to our MMA program and now have two proprietary gene therapy programs to rapidly follow our ongoing empty capsid study. Additionally, we continue to progress our enzyme program, with an expected IND filing by the end of 2021 in IgA nephropathy, and topline data from the Phase 3 DISSOLVE program for SEL-212 anticipated in the second half of 2022.”

Following the Q1 results, Stifel Nicolaus analyst Derek Archila maintained the stock’s price target of $3 (2.4% upside potential) and a Hold rating.

Archila commented, “SELB continues to progress its largely early-stage pipeline with some early data from its ‘399 program expected by year-end, while multiple IND filings occurring in late 2021 and early 2022 are on deck. Given the early nature of SELB’s programs, we continue to await more data before getting more constructive on the pipeline.”

Consensus among analysts is a Strong Buy based on 6 Buys and 1 Hold. The average analyst price target stands at $7.67 and implies upside potential of 161.8% to current levels. Shares have gained 11.8% over the past year.

Furthermore, TipRanks data shows that financial blogger opinions are 100% Bullish on SELB, compared to a sector average of 70%.

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