Shares of Selecta Biosciences (SELB) rallied 14.4% on Thursday after the company reported better-than-expected Q2 results. The biopharmaceutical company engages in the research and development of nanoparticle immunomodulatory drugs for the treatment and prevention of human diseases.
Net income in the second quarter stood at $4.6 million or $0.04 per share, against a net loss of $24.1 million or $0.25 per share in the year-ago quarter. Analysts had expected the company to report a loss of $0.12 per share.
Revenues stood at $19.7 million, surpassing analysts’ expectations of $6.24 million. While research and development expenses increased 35.5% year-over-year to $14.5 million, general and administrative costs decreased 16.1% to $4.7 million. (See Selecta stock charts on TipRanks)
The President and CEO of Selecta, Carsten Brunn (Ph.D.), said, “The recently published preclinical data is encouraging and further supports the advancement of our lead candidate in methylmalonic acidemia (MMA), SEL-302. We will build on this momentum and expect to file an IND in MMA during the third quarter of 2021, bringing us one step closer to addressing immunogenicity constraints in AAV-driven gene therapy and ultimately, providing patients with potentially transformative treatment options.”
Following the release, Needham analyst Chad Messer assigned a Buy rating to the stock with a price target of $6 (upside potential of 37.3%).
Messer said, “We believe a demonstration that the ImmTOR platform can block the development of neutralizing antibodies (NABs) in gene therapy would be a significant value creating event for SELB. An IND for SEL-302 (prev. MMA-101) is expected in 4Q.”
Overall, the rest of the Street is bullish on the stock with a Strong Buy consensus based on 6 Buys and 1 Hold. The average Selecta price target of $7.67 implies upside potential of about 75.5% from current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Selecta with 3.1% of investors on TipRanks increasing their exposure to SELB stock over the past 30 days.
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