Seelos Therapeutics price target lowered to $1 from $4 at Benchmark

Benchmark lowered the firm’s price target on Seelos Therapeutics to $1 from $4 and keeps a Speculative Buy rating on the shares after the company reported “mixed” results from its Phase 2 study of SLS-002 for Acute Suicidal Ideation and Behavior in adults with Major Depressive Disorder, or MDD. While on the “good news” side, SLS-002 showed a statistically significant difference in response compared to placebo at several time points out to 16 days, the “bad news” includes the fact that the study missed its primary endpoint of MADRS Analysis of Covariance at 24 hours, the analyst tells investors. The firm’s new price target assumes that a Phase 3 trial for SLS-002 costs approximately $50M and is funded with equity at the current share price, the analyst explains.