SELLAS Life Sciences Group (SLS) AI Stock Analysis

• Market Cap: $191.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: N/A
• EPS Growth: 64.43%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.07
• Shares Outstanding: 105,297,470
• 10 Day Avg. Volume: 2,128,292
• 30 Day Avg. Volume: 1,972,578
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -5.26
• 1Y Price Target: $7.00
• Price Target Upside: 264.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: ―

SELLAS Life Sciences Group's overall stock score is low due to significant financial challenges, including inconsistent revenue, negative profitability, and reliance on external financing. The technical analysis shows strong momentum, but overbought conditions pose near-term risks. Valuation metrics are concerning with a negative P/E ratio and no dividend yield, further impacting the stock's attractiveness.

Positive Factors

Clinical trial progress

Positive interim analysis from the P3 REGAL study evaluating GPS in AML with a recommendation to continue without modification.

Efficacy and safety

SLS009 in combination with venetoclax + azacitidine in relapsed/refractory AML exceeded its prespecified 20% ORR target with a 33% ORR across all evaluable patients.

Regulatory advancement

Sellas has FDA guidance to move the triplet now to 1L AML, which represents a significant positive for Sellas as it progresses this program.

Negative Factors

Market pressure

Today's share weakness is viewed as an opportunity ahead of the top-line P3 data.

Stock performance

SLS shares are down as much as 26%, possibly due to a slight run-up ahead of the data and some profit taking, as well as continued pressure in the biotech sector.

SELLAS Life Sciences Group Business Overview & Revenue Model

Company Description

SELLAS Life Sciences Group, Inc., a late-stage biopharmaceutical company, focuses on the development of novel cancer immunotherapies for various cancer indications in the United States. Its lead product candidate is galinpepimut-S (GPS), a cancer immunotherapeutic agent that targets Wilms tumor 1, which is in Phase III clinical trials for the treatment of acute myeloid leukemia; and in Phase 1/2 clinical trials for the treatment for ovarian cancer. The company also develops nelipepimut-S, a cancer immunotherapy that targets human epidermal growth factor receptor 2, which is in Phase 2b clinical trials for the treatment of early-stage breast cancer. It has a strategic collaboration with Merck & Co., Inc. to evaluate GPS as it is administered in combination with PD1 blocker pembrolizumab in a Phase 1/2 clinical trial enrolling patients in up to five cancer indications, including hematologic malignancies and solid tumors. The company was founded in 2012 and is headquartered in New York, New York.

How the Company Makes Money

SELLAS Life Sciences Group makes money primarily through the development and commercialization of its proprietary cancer immunotherapy products. Revenue streams include licensing agreements, strategic partnerships, and collaborations with other biopharmaceutical companies, which often involve upfront payments, milestone payments, and royalties on sales of commercialized products. The company may also receive government grants or funding from research institutions to support its clinical trials and research activities. Additionally, SELLAS might generate income through potential product sales if its therapies receive regulatory approval.

SELLAS Life Sciences Group Financial Statement Overview

Summary

SELLAS Life Sciences Group is facing significant financial challenges, with ongoing losses and negative cash flow trends. The inconsistency in revenue generation and negative profitability metrics indicate operational issues. The balance sheet shows moderate leverage but deteriorating equity, raising concerns about financial stability. The company's reliance on external financing highlights cash flow sustainability risks.

Income Statement

The company has shown inconsistent revenue with zero revenue in the latest period. Gross profit margin and all other margins are negative, indicating significant operational challenges. The net loss has been fluctuating, but the consistent negative EBIT and EBITDA margins highlight ongoing difficulties in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio is relatively low, indicating moderate leverage. However, the negative stockholders' equity in the recent period poses a concern. The equity ratio has deteriorated, reflecting potential financial instability. Overall, the balance sheet reflects a high-risk financial position.

Cash Flow

Operating cash flow is consistently negative, and the free cash flow has been declining, indicating cash flow challenges. Although financing cash flow has been positive, largely due to external funding, reliance on external financing could be unsustainable in the long term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	1.00M	7.60M	1.90M
Gross Profit	0.00	0.00	0.00	900.00K	7.40M	1.90M
EBITDA	-36.38M	-30.88M	529.00K	-31.95M	-19.59M	-16.40M
Net Income	-26.26M	-30.88M	-37.34M	-41.30M	-20.70M	-16.76M
Balance Sheet
Total Assets	32.30M	19.43M	6.22M	20.94M	26.27M	46.05M
Cash, Cash Equivalents and Short-Term Investments	25.40M	13.99M	2.53M	17.13M	21.36M	35.30M
Total Debt	737.00K	1.00M	906.00K	945.00K	808.00K	991.00K
Total Liabilities	6.16M	9.97M	14.20M	16.09M	5.93M	18.09M
Stockholders Equity	26.15M	9.46M	-7.98M	4.85M	20.35M	27.96M
Cash Flow
Free Cash Flow	-31.36M	-35.40M	-36.91M	-28.31M	-26.02M	-10.42M
Operating Cash Flow	-31.36M	-35.40M	-31.41M	-23.81M	-26.02M	-10.42M
Investing Cash Flow	0.00	0.00	-5.50M	-4.50M	0.00	0.00
Financing Cash Flow	47.51M	46.76M	22.32M	24.08M	12.07M	38.44M

SELLAS Life Sciences Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLS, the sentiment is Positive. The current price of 1.92 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.80, and above the 200-day MA of 1.40, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 82.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLS.

SELLAS Life Sciences Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
VYGR	50 Neutral	$189.70M	5.05	-37.26%	―	-70.38%	-683.06%
SLS	43 Neutral	$191.64M	―	-180.71%	―	―	64.43%
GALT	35 Underperform	$266.49M	―	48.74%	―	―	17.80%
TLSA	―	$211.78M	―	-250.49%	―	―	―
DMAC	42 Neutral	$312.46M	―	-73.41%	―	―	-31.78%
BDTX	33 Underperform	$165.11M	12.25	11.85%	―	―	―

SELLAS Life Sciences Group Corporate Events

SELLAS Life Sciences Announces Positive Phase 3 Trial Results

On January 23, 2025, SELLAS Life Sciences Group announced positive interim results from its Phase 3 REGAL trial evaluating galinpepimut-S (GPS) for acute myeloid leukemia (AML). The Independent Data Monitoring Committee (IDMC) recommended the trial continue without modifications, citing GPS’s safety and efficacy in surpassing futility criteria and showing a promising median survival rate for patients. With fewer than 50% of patients deceased after a median follow-up of 13.5 months, these results indicate a potential shift in standard care for AML, pending further data upon reaching 80 events. The company is preparing for regulatory submissions, indicating potential transformative impacts on treatment options available for AML patients.