Selecta Biosciences risk/reward favorable into data, says Mizuho

Heading into the joint data readout of the Phase 3 DISSOLVE I and II trials for SEL-212 in chronic refractory gout expected in late Q1, Mizuho analyst Uy Ear believes the likelihood of positive data is high. The analyst looks for a response rate at six months in the 50% range for SEL-212. Selecta Biosciences shares are up 37% year-to-date, but this was driven primarily by sector-wide rotation into depressed SMID-cap names and the Astellas deal in January, the analyst tells investors in a research note. With "very little value" for the upcoming Phase 3 data readout, Selecta’s risk/reward heading into the event is favorable, with $1 per share of potential upside, contends the firm. It keeps a Buy rating on Selecta Biosciences with a $5 price target.