Sana Biotechnology (SANA) is an American drug development company based in Seattle. The company has focused on developing medicines based on engineered cells. It went public in February 2021 in a deal that raised $626.4 million.
Let’s take a look at the company’s latest financial performance, corporate developments, and changes in risk factors. (See Sana Biotechnology stock charts on TipRanks).
Sana Biotechnology’s Q2 Financial Results
The company did not report revenue for Q2 2021. It instead posted an adjusted loss per share of $0.32. That narrowed from a loss per share of $2.85 in the same quarter last year, and beat consensus estimates for a loss per share of $0.45. Sana ended Q2 with $930.8 million in cash.
Sana Biotechnology’s Corporate Developments
The company is currently testing its product candidates in animals, and aims to begin human studies next year. Sana was able to successfully transplant engineered stem cells in non-human primates. It said that demonstrated a key step in using engineered cells for disease treatment.
As it gears up to begin human trials for multiple product candidates next year, Sana is in the process of setting up a manufacturing site in Fremont, California. The facility will be dedicated to producing Sana’s products candidates across its entire portfolio. According to Sana CEO Steve Harr, manufacturing is a major obstacle to the development and accessibility of cell and gene-based medicines. Sana said locating the facility in Fremont will allow for access to an important biotechnology talent base.
Sana Biotechnology’s Risk Factors
The new TipRanks Risk Factors tool reveals 82 risk factors for Sana Biotechnology. Since Q4 2020, the company has updated its risk profile to add one new risk factor and remove two previous risk factors.
The newly added risk factor falls under the Tech and Innovation category, and regards the challenge of securing regulatory approval for a new medicine product.
Sana cautions that even if a product candidate successfully progresses through preclinical studies, there can be no assurance that it will also successfully complete clinical trials. If a product candidate fails in the trials, Sana warns that its business prospects would be adversely affected.
Sana dropped a Finance and Corporate risk factor that cautioned about the use of its IPO money. The company had warned that its management could spend its IPO proceeds in ways that shareholders may not agree with or generate favorable returns.
The majority of Sana Biotechnology’s risk factors fall under the Tech and Innovation category, with 35% of the total risks. That is above the sector average of 26%. Sana’s stock has declined about 33% year-to-date.
Analysts’ Take on Sana Biotechnology
In August, Goldman Sachs analyst Salveen Richter reiterated a Hold rating on Sana Biotechnology stock, but lowered his price target to $34 from $36. Richter’s new price target suggests 44.3% upside potential.
Consensus among analysts is a Hold, based on two Holds. The average Sana Biotechnology price target of $32.50 implies 37.9% upside potential to current levels.
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