Maxim ups SELLAS to buy; sets PT $12

SELLAS Life Sciences

Maxim Group upgraded SELLAS Life Sciences (NASDAQ:SLS) to “buy” from “hold” with a price target of $12 after the company removed a financing overhang. The stock closed at $6.17 on Nov. 14.
SELLAS ended the latest quarter with $9.1-million in cash, with a $5-million ATM in place, and a one-for-50 reverse stock split.

“The company should be funded through the first half of 2020, sufficient to reach the next set of catalysts,” writes analyst Jason McCarthy. “Our fundamental view around the company and its cancer vaccine platform remains unchanged.”

Mr. McCarthy said the next event for the company is initiating a Phase 3 program of galinpepimut-S (GPS), which is expected before the end of 2019. The study is expected to enroll up to 116 patients with acute myeloid leukemia.

In addition, studies evaluating combinations of GPS and PD-1 checkpoints in ovarian cancer, as well as colorectal cancer, and mesothelioma are expected to be updated in 2020, he added.