Clinical-stage biopharmaceutical company Seelos Therapeutics (NASDAQ: SEEL) cratered in trading on Wednesday as its promising Phase 2 trial of SLS-002 did not meet its primary endpoint due to a small number of patients. The company announced promising topline data and a well-tolerated safety profile from its Phase 2 study of SLS-002 (intranasal racemic ketamine) for Acute Suicidal Ideation and Behavior (ASIB) in adults with Major Depressive Disorder (MDD).
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This Phase 2 trial was a double-blind, placebo-controlled trial of SLS-002 versus a placebo that indicated “early and persistent reductions in symptoms of depression as assessed by the Montgomery-Åsberg Depression Rating Scale (MADRS)”
However, while the target for patient enrollment was 220 patients, due to financial constraints, the company was able to enroll only 147 patients. Seelos stated in its press release, “Due to the limited sample size, the study did not meet the pre-defined primary endpoint (MADRS ANCOVA at 24 hours post dosing). However, assuming the same treatment difference and standard deviation, analyses showed that the study would have achieved statistical significance for the primary endpoint, had the study reached full enrollment (220 patients).”
Is Seelos a Good Stock to Buy?
It seems SEEL is a good stock to buy as analysts remain bullish about SEEL stock with a unanimous three Buys.