SLS Stock Breaches $5 Level After Over 3 Years: Retail Now Eyes Buyout For As Much As $25B

• SELLAS is currently evaluating Galinpepimut-S (GPS) as a potential maintenance therapy in patients with Acute Myeloid Leukemia.
• The stock has had a good run since the company said that slower deaths in the GPS trial might imply further clinical benefit.

Shares of SELLAS Life Sciences Group, Inc. (SLS) garnered retail attention on Monday after it breached the $5 threshold after over three years during the day trading session.

The stock closed 15% higher in the regular trading session to close at $5 and traded 2% higher after hours.

Retail Speaks

On Stocktwits, retail sentiment around SLS stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume improved from ‘extremely low’ to ‘low’ levels.

A bullish Stocktwits user rejoiced at the new levels.

Another expressed optimism for a buyout of the company for as much as $25 billion.

What’s Driving The Rally?

SELLAS is currently evaluating Galinpepimut-S (GPS) as a potential maintenance therapy in patients with Acute Myeloid Leukemia who have achieved complete remission following second-line salvage therapy. AML is a fast-growing cancer of the blood and bone marrow where immature white blood cells build up, crowding out healthy cells, leading to fatigue, infections, and bleeding.

The ongoing GPS trial is an overall survival study and final analysis is expected once 80 deaths have occurred. As of December 26, 72 deaths have occurred, the company said last month, highlighting that it had previously expected 80 patient deaths to occur by December end.

“While the 80th event has not yet occurred, and we remain fully blinded, every passing month may increase the probability of a successful study as highlighted by key opinion leaders in our recent R&D event. Conclusive data will follow the unblinding and analyses of the study results,” SELLAS CEO Angelos Stergiou then said.

Last week, Maxim analyst Jason McCarthy noted that delays in an event-driven trial like SELLAS’ could be suggestive of extended survival benefit from GPS.

Besides GPS, SELLAS has another experimental drug in its pipeline called SLS009 also being developed to target certain cancers.

According to data from Koyfin, all three of the analysts covering SELLAS rate it ‘Buy’ or higher. The stock has an average price target of $6.83, hinting at further potential upside.

SLS shares have nearly tripled this year and multiplied by about five times in value over the past 12 months. 

Read also: CRNX Stock Gains, NBIX Shares Drop On Positive Results From Genetics Disorder Trial

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