Key Highlights

  • SELLAS Life Sciences shares are trading at $11.39 in Thursday's session, down 7.47%.
  • No new company announcement has been identified; investors are in a holding pattern ahead of the final Phase 3 REGAL analysis.
  • The REGAL trial had reached 78 of the 80 required events as of late July.
  • Rising rates are pressuring small-cap biotech, with the 10-year Treasury Yield near 5.34%, a level not seen since 2002.

Waiting on REGAL Keeps Pressure on the Shares

SELLAS Life Sciences (NASDAQ:SLS) is trading lower in Thursday's session with no new company news, as investors sit in a holding pattern ahead of a pivotal readout. The New York-based late-stage biotech is developing galinpepimut-S, a peptide immunotherapy targeting the Wilms tumor 1 protein, alongside SLS009, a selective CDK9 inhibitor.

The stock is down about 7.5% at $11.39 on Volume below average. The Phase 3 REGAL trial of galinpepimut-S in acute myeloid leukemia had reached 78 of the 80 required events as of late July, and its final analysis is the event the market is waiting on.

Stretched Valuation Meets Rising Rates

A research firm notes the stock trades at a Price-to-Book Ratio of about 16.9, roughly eight times the industry average of 2.1. The company has no approved products or commercial Revenue and funds operations primarily through equity financing.

That leaves little room for error as the 10-year Treasury yield sits near 5.34%, its highest level since 2002, a backdrop that is hard on rate-sensitive small-cap biotech.

Targets Sit Far Above the Price While Buyout Talk Lingers

Analyst price targets average about $30 to $32, well above the current price. Speculation about a Partnership or buyout, along with Phase 2 SLS009 data expected in the fourth quarter, remains in the background. Shares trade within a 52-week range of $1.39 to $15.88.