H.C. Wainwright slashed its price target for SELLAS Life Sciences (NASDAQ:SLS) to $4 from $11 after the company completed a $21.6-million offering of common shares, pre-funded warrants and warrants in July. The stock closed at $1.12 on July 30.
Analyst Joseph Pantginis writes that the change to his valuation reflects a new fully diluted share count from the recent financing.
With a bolstered cash balance, he said the company is able to meet its previously stated objectives of initiating the Phase 1/2 “basket” study testing GPS in combination with Keytruda in several indications in the third quarter of 2018 and initiate the Phase 3 GPS study in AML patients in the second half of 2018.
