SLS Stock Rises Overnight Despite Citi’s 64% Stake Cut — Retail Bulls Say SLS009 Alone Could Outvalue Sellas

• Citigroup cut its holding by 64% to 119,036 shares, worth about $1.47 million at September-end.
• SLS009’s completed Phase 2 study showed a 34% response rate among 59 evaluable AML patients.
• Sellas expects Q4 results from its 80-patient frontline SLS009 study and Phase 3 Regal trial, which reached its 80th event last week.

Shares of Sellas Life Sciences (SLS) rose 0.4% overnight late Wednesday as Citigroup disclosed a nearly 64% cut in its stake, while retail bulls argued that SLS009 alone could be worth more than the company.

SLS stock rose 3% on Wednesday to $9.14, with shares still down nearly 6% for the week. 

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Citi Slashes SLS Stake, Other Investors Split 

Citigroup cut its Sellas holding by nearly two-thirds in the third quarter, reducing its position by 207,555 shares, or 64%, to 119,036 shares as of Sept.30, according to Fiscal.ai data on Wednesday’s disclosures. The remaining stake was worth about $1.47 million at quarter-end. 

Meanwhile, Prospera Financial Services added 12,600 shares, increasing its holding by nearly 70% to 30,719. Eversource Wealth Advisors trimmed its position by roughly 42% to 5,785 shares, while Nemes Rush Group kept its holding unchanged at 10,000 shares.

SLS009 Heads To ASH With Fresh AML Results

The developments come as Sellas shared Phase 2 results for SLS009, also called Tambiciclib, ahead of a Dec.14 presentation at the American Society of Hematology (ASH) meeting in New Orleans.

The study tested SLS009 with Azacitidine and Venetoclax in 62 previously treated AML patients whose leukemia had returned or stopped responding to venetoclax-based treatment. Across doses, 34% of the 59 patients assessed responded. At the selected dose, 54% of patients with monocytic AML responded, with median survival of 5.8 months. For TP53-mutated AML, the response rate was 57% and median survival was 8.8 months.

Sellas reported limited added toxicity and cited historical survival of about 2.5 months in these high-risk groups. Without a concurrent comparison group, however, the figures do not prove a survival benefit.

The company is also exploring SLS009 beyond leukemia. In September, it reported activity in laboratory models of pancreatic cancer, although those early findings have yet to establish benefit in patients.

Sellas Nears A 2-Trial Data Test

CEO Angelos Stergiou highlighted the SLS009 findings in a recent LinkedIn post, while drawing attention to two upcoming data announcements. “These are some of the hardest-to-treat patients in hematology. Seeing this level of activity is exactly why we do this work,” he said.

Sellas expects initial results this quarter from its ongoing 80-patient Phase 2 study of SLS009 in newly diagnosed AML. This readout is separate from the completed study being presented at ASH. Stergiou also reiterated that results from the Phase 3 Regal trial of Galinpepimut-S (GPS) are expected soon.

Regal reached its prespecified 80th patient death on Oct. 28, triggering the process of locking the database, unblinding treatment assignments and analyzing the final results. The randomized trial is testing whether GPS maintenance treatment helps AML patients live longer after achieving a second complete remission. Preliminary results are expected this quarter.

How Do Retail Traders Feel About SLS?

On Stocktwits, retail sentiment for SLS slipped to ‘bullish’ from ‘extremely bullish’ levels a week ago amid ‘high’ message volume.

One user said, “009 is not valued for a penny in the market cap.” They added that the asset alone should be worth five times Sellas’ valuation.

Another user put SLS009’s standalone value above $5 billion.

A separate user said that successful SLS009 frontline results could support a buyout even if GPS disappointed. “Two platforms on goal on multiple indications! I like the odds!” the user said. Another user urged investors to look beyond a single leukemia indication, saying, “The platform valuation is the true forest. AML revenue is just the initial tree.”

SLS stock has risen 142% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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