Analyst Explains Why They Downgraded Their Rating on SELLAS Life Sciences Group Inc (SLS)

By Ryan Adsit

SELLAS Life Sciences Group Inc (SLSResearch Report) received a Hold rating from Maxim Group analyst Jason McCarthy today. The company’s shares opened today at $1.26, close to its 52-week low of $0.80.

McCarthy observed:

“Sellas reported FYE18 with operating expenses of $31.1M which included an impairment charge of $9.6M. Net loss was ($27.7M) and loss attributable to common stockholders was ($41.3M). Sellas ended the year with $5.3M in cash. A warrant exchange in March 2019 could bring in $4.18M. The company still needs to raise capital to support the planned P3 study of galinpepimut-S (GPS) and is currently exploring strategic options, including around nelipepimut-S (NPS) in triple negative breast cancer. We believe the fundamentals remain intact and our positive views around GPS and NPS remain unchanged. That said, we are downgrading to and removing our price target while Sellas addresses its capital needs.”

According to TipRanks.com, McCarthy is ranked 0 out of 5 stars with an average return of -1.8% and a 35.4% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as ContraVir Pharmaceuticals Inc, Actinium Pharmaceuticals, and Inovio Pharmaceuticals.

The the analyst consensus on SELLAS Life Sciences Group Inc is currently a Hold rating.

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The company has a one-year high of $11.09 and a one-year low of $0.80. Currently, SELLAS Life Sciences Group Inc has an average volume of 279.6K.

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SELLAS Life Sciences Group, Inc. operates as a clinical stage biopharmaceutical company, which focuses on the development and commercialization of novel cancer immunotherapeutic for a broad range of indications. Its product galinpepimut-S, or GPS, is an immunotherapeutic agent licensed from Memorial Sloan Kettering Cancer Center, or MSK, which targets the Wilms tumor 1, or WT1, protein. The company was founded on April 3, 2006 and is headquartered in New York, NY.