SANA Stock Rallies 24% After Hours — How Much Is Mayo Clinic Investing In The Company?

• Sana expects to seek the U.S. Food and Drug Administration’s clearance to start clinical trials and begin early stage trials for it as early as this year. 
• Sana on Monday said that Mayo purchased 7.5 million shares of the company’s common stock at a price of $3.33 per share for gross proceeds of about $25 million under the deal.
• The purchase price under the agreement implies a potential upside of about 4% from the stock's closing price on Monday.

Shares of Sana Biotechnology, Inc. (SANA) jumped 24% after-hours on Monday after the company announced a strategic collaboration with Mayo Clinic that involves an equity investment by the latter.  

The agreement is aimed at advancing the development of its investigational cell therapy SC451 for type 1 diabetes. The company expects to seek the U.S. Food and Drug Administration’s clearance to start clinical trials and begin early stage trials for it as early as this year.

Sana’s SC451 is designed to support long-term glucose control without the need for ongoing insulin therapy in type 1 diabetes patients. The agreement with Mayo is aimed at accelerating development, validation, and standardization of protocols and processes for SC451, and supporting safe, scalable, and consistent delivery across diverse clinical environments.

Equity Investment

Sana on Monday said that Mayo purchased 7.5 million shares of the company’s common stock at a price of $3.33 per share for gross proceeds of about $25 million under the deal. It also noted that Mayo would have the option to make an additional equity investment of $25 million as part of the collaboration.

The closing of the sale of the initial $25 million worth of shares is expected to occur on or about April 15, Sana said.  

The purchase price under the agreement implies a potential upside of about 4% from the stock's closing price on Monday and nearly 8% from the closing price on Friday.

Wall Street Take

According to data from Koyfin, eight of the nine analysts covering SANA rate it ‘Buy’ or higher, while one rates it ‘Hold.’ The 12-month average price target on the stock is $8.43, representing a potential upside of about 163% from the stock’s last closing price.

How Did Retail Traders React?

On Stocktwits, retail sentiment around SANA stock rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘normal’ levels.

SANA stock has gained 77% over the past 12 months. 

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