Analyst Jason McCarthy of Maxim Group maintained a Buy rating on SELLAS Life Sciences Group (SLS – Research Report), retaining the price target of $4.00.
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Jason McCarthy has given his Buy rating due to a combination of factors including the promising preclinical data for SELLAS Life Sciences Group’s SLS009 in TP53-mutated acute myeloid leukemia (AML). This data, presented at the AACR meeting, demonstrated SLS009’s ability to induce apoptosis in challenging TP53-mutated AML cell lines, which is a significant development given the poor prognosis associated with this mutation. The potential of SLS009 to overcome TP53-driven resistance is seen as a positive indicator, especially when considered alongside the company’s Phase 2a combination data showing a response in a TP53-mutated patient.
Furthermore, the ongoing studies, including the Phase 2a study in combination with venetoclax and azacitidine, and the anticipated top-line data by the end of the second quarter of 2025, are key catalysts for the stock. Additionally, the valuation models for SELLAS factor in potential commercialization of their lead candidate, galinpepimut-S (GPS), in 2027, with adjustments for revenue risk and a discount rate applied to derive a 12-month price target of $4.00. These elements collectively support McCarthy’s optimistic outlook and Buy rating for SELLAS Life Sciences Group.
SLS’s price has also changed moderately for the past six months – from $1.230 to $1.430, which is a 16.26% increase.