Wall Street expects no quarterly revenue and a GAAP loss of $0.04 per share, narrowing from $0.05 previously.
- Retail investors are awaiting clarity on Sellas’ cash position, quiet period, and Regal trial event count.
- The Regal trial remained two events short of the 80 deaths required to trigger its final overall survival analysis.
- Sellas estimated $138.3 million in cash despite losing its $13 million arbitration claim against 3D Medicines.
Shares of Sellas Life Sciences (SLS) rebounded over 1% in premarket trading on Tuesday after its worst session in nearly three weeks as investors looked to an anticipated second-quarter (Q2) update for clarity on the company’s cash position and key Phase 3 Regal trial.
SLS stock fell 8% on Monday to close at $11.04 before edging 0.3% higher in extended trading.
SLS Retail Awaits ‘Very Special’ Update
On Stocktwits, retail sentiment for SLS slipped to ‘bearish’ from ‘neutral’ levels a day ago amid a 238% jump in 24-hour message volumes.
One user said an all-at-once update covering those issues “could be a huge and very special day,” while another predicted that investors would receive a 10-Q this week, potentially accompanied by an 8-K or LinkedIn post from CEO Angelos Stergiou.
Others questioned the company’s quiet period. “Why are they in a QP?” one trader asked, speculating that it could indicate access to data or buyout discussions. Another user noted that nearly four weeks had passed since Stergiou said Regal was “approaching [the] 80th event threshold” and suggested that final-analysis topline data could be “impending.”
Still, retail expectations carry downside risk. One trader warned that releasing Q2 results without clarifying the event count “will only drive the SP down,” adding that “impatience is setting in.”
SLS Q2 Preview
Sellas is not expected to report quarterly revenue, according to Koyfin. Wall Street forecasts a GAAP loss of $0.04 per share, narrowing from $0.05 previously, and an operating loss of $9.08 million versus $9.25 million in the prior period.
The two analysts covering SLS rate it a “Strong Buy,” with price targets of $25 and $30. The $27.50 average target implies about 149% upside from current levels.
Sellas Awaits 80th Regal Event
Regal is evaluating Sellas’ Galinpepimut-S (GPS) as maintenance therapy for acute myeloid leukemia (AML) patients who achieved complete remission following second-line treatment. The event-driven study had recorded 78 of the 80 deaths required to trigger its final analysis, leaving it two events short at the company’s last update. Stergiou called the slower-than-expected event accumulation as encouraging because the primary endpoint is overall survival.
Sellas has said the trial would be considered successful if GPS delivers a median overall survival of 12.6 months, compared with eight months under standard treatment.
Sellas Strengthens Cash Position
Sellas recently estimated that it held $138.3 million in cash and cash equivalents as of June 30, up from $107.1 million at the end of the first quarter after receiving $28.7 million through warrant exercises in April and May.
The stronger liquidity position followed an arbitration setback involving Chinese biotechnology company 3D Medicines. The sole arbitrator dismissed Sellas’ claims for $13 million in disputed GPS milestone payments and ordered it to contribute about $1 million toward 3D Medicines’ legal costs.
The broader partnership remains intact, with 3D Medicines continuing to develop and commercialize GPS in Greater China. The agreement carries up to $191.5 million in potential future milestone payments, including the disputed $13 million.
SLS stock has surged 599% over the past year.
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