SELB stock was operating below the radar according to Cantor Fitzgerald analyst Elaina Merle but its latest move has put it on everyone’s radar now.
On December 19, 2019, Selecta Biosciences and Asklepios BioPharmaceutical announced that the companies have entered into a license agreement. Under the terms of the agreement, AskBio has exercised its option to exclusively license rights to develop and commercialize Selecta’s immune tolerance platform, ImmTOR, for use in adeno-associated virus gene therapy for the treatment of Pompe disease. When used in combination with AAV gene therapy vectors, Selecta’s ImmTOR has been shown to inhibit the immune response to the vector. Selecta and AskBio previously announced a strategic partnership in August 2019 to jointly develop, manufacture, and commercialize targeted therapeutics for next-generation AAV gene therapies in areas of high medical need. Under the terms of this new license agreement, Selecta is eligible to receive upfront and milestone payments of over $240M plus royalties on product sales.
On January 29, 2020, Cantor Fitzgerald analyst Elaina Merle initiated coverage of Selecta Biosciences with an Overweight rating and $10 price target. Elaina views Selecta as an “under the radar story” with a “de-risked Phase 3 ready asset.” The company’s ImmTOR platform to enable gene therapy re-dosing has broad potential, Merle tells investors in a research note. Its lead program SEL-212 uses ImmTOR in gout, and the data not only show clear proof of concept but also support a $1 billion market opportunity.
On January 21, 2020, William Blair initiated coverage of Selecta Biosciences with an Outperform rating. The firm sees a favorable near-term setup for the shares.
The rising large players volume is bullish but the Twiggs Money Flow clearly shows that momentum has dropped off in SELB stock as profit taking kicks in. The stock is currently consolidating and I’d like to see a bit more of that before considering a long entry.