SELLAS Life Sciences Group (SLS) AI Stock Analysis

• Market Cap: $163.64M
• Dividend Yield: N/A
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: N/A
• EPS Growth: 60.51%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.07
• Shares Outstanding: 99,777,490
• 10 Day Avg. Volume: 2,862,875
• 30 Day Avg. Volume: 2,738,538
• PEG Ratio: 0.06
• Price to Book (P/B): 5.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.82
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -1.22
• 1Y Price Target: $5.75
• Price Target Upside: 259.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: ―

SELLAS Life Sciences Group's overall stock score is low due to significant financial challenges, including inconsistent revenue, negative profitability, and reliance on external financing. The technical analysis shows strong momentum, but overbought conditions pose near-term risks. Valuation metrics are concerning with a negative P/E ratio and no dividend yield, further impacting the stock's attractiveness.

Positive Factors

Clinical Trial Results

Positive preclinical data for SLS009 in ASXL1 mutated colorectal cancer cell lines were announced at the ongoing ASCO meeting.

Regulatory Progress

The Independent Data Monitoring Committee (IDMC), which reviewed unblinded data, recommended to continue the trial unmodified, indicating a significant positive outcome.

Safety and Efficacy

SLS009 has high selectivity for CDK9, and less toxicity compared to first-generation CDK9 inhibitors.

Negative Factors

Market Reaction

SLS shares are down as much as 26%, possibly due to a slight run-up ahead of the data and some profit taking, as well as continued pressure in the biotech sector.

Market Volatility

Today's share weakness is viewed as an opportunity ahead of the top-line P3 data.

SELLAS Life Sciences Group Business Overview & Revenue Model

Company Description

SELLAS Life Sciences Group (SLS) is a biopharmaceutical company focused on developing novel cancer immunotherapeutics for a broad range of cancer indications. The company's core product is galinpepimut-S (GPS), which is designed to stimulate an immune response against specific cancer cells. SELLAS is involved in clinical trials and research collaborations to advance its pipeline and bring innovative cancer treatments to market.

How the Company Makes Money

SELLAS Life Sciences Group makes money primarily through the development and commercialization of its proprietary cancer immunotherapy products. Revenue streams include licensing agreements, strategic partnerships, and collaborations with other biopharmaceutical companies, which often involve upfront payments, milestone payments, and royalties on sales of commercialized products. The company may also receive government grants or funding from research institutions to support its clinical trials and research activities. Additionally, SELLAS might generate income through potential product sales if its therapies receive regulatory approval.

SELLAS Life Sciences Group Financial Statement Overview

Summary

SELLAS Life Sciences Group is facing significant financial challenges, with ongoing losses and negative cash flow trends. The inconsistency in revenue generation and negative profitability metrics indicate operational issues. The balance sheet shows moderate leverage but deteriorating equity, raising concerns about financial stability. The company's reliance on external financing highlights cash flow sustainability risks.

Income Statement

The company has shown inconsistent revenue with zero revenue in the latest period. Gross profit margin and all other margins are negative, indicating significant operational challenges. The net loss has been fluctuating, but the consistent negative EBIT and EBITDA margins highlight ongoing difficulties in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio is relatively low, indicating moderate leverage. However, the negative stockholders' equity in the recent period poses a concern. The equity ratio has deteriorated, reflecting potential financial instability. Overall, the balance sheet reflects a high-risk financial position.

Cash Flow

Operating cash flow is consistently negative, and the free cash flow has been declining, indicating cash flow challenges. Although financing cash flow has been positive, largely due to external funding, reliance on external financing could be unsustainable in the long term.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	1.00M	7.60M	1.90M
	Gross Profit
0.00	0.00	0.00	900.00K	7.40M	1.90M
	EBIT
-27.93M	-31.51M	-37.87M	-41.95M	-25.29M	-16.98M
	EBITDA
-27.93M	-30.88M	529.00K	-31.95M	-19.66M	-16.40M
	Net Income Common Stockholders
-27.13M	-30.88M	-37.34M	-40.65M	-20.70M	-16.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.50M	13.99M	2.53M	17.13M	21.36M	35.30M
	Total Assets
34.96M	19.43M	6.22M	20.94M	26.27M	46.05M
	Total Debt
870.00K	1.00M	906.00K	945.00K	808.00K	991.00K
	Net Debt
-27.63M	-12.98M	-1.62M	-16.18M	-20.55M	-34.31M
	Total Liabilities
7.20M	9.97M	14.20M	16.09M	5.93M	18.09M
	Stockholders Equity
27.76M	9.46M	-7.98M	4.85M	20.35M	27.96M
Cash Flow		Free Cash Flow
-33.71M	-35.40M	-36.91M	-28.31M	-26.02M	-10.42M
	Operating Cash Flow
-33.71M	-35.40M	-31.41M	-23.81M	-26.02M	-10.42M
	Investing Cash Flow
0.00	0.00	-5.50M	-4.50M	0.00	0.00
	Financing Cash Flow
43.69M	46.76M	22.32M	24.08M	12.07M	38.44M

SELLAS Life Sciences Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLS, the sentiment is Neutral. The current price of 1.6 is below the 20-day moving average (MA) of 1.68, above the 50-day MA of 1.44, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 7.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLS.

SELLAS Life Sciences Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEER	57 Neutral	$125.93M	―	-24.73%	―	-1.02%	-8.59%
FATE	57 Neutral	$149.02M	―	-49.23%	―	105.85%	22.13%
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%
EDIT	52 Neutral	$152.36M	―	-140.82%	―	-48.37%	-44.70%
SLS	43 Neutral	$163.64M	―	-144.90%	―	―	60.51%
BDSX	42 Neutral	$44.06M	―	-1454.41%	―	35.76%	47.48%
TNYA	36 Underperform	$79.71M	―	-76.21%	―	―	23.55%

SELLAS Life Sciences Group Corporate Events

SELLAS Life Sciences Announces Positive Phase 3 Trial Results

On January 23, 2025, SELLAS Life Sciences Group announced positive interim results from its Phase 3 REGAL trial evaluating galinpepimut-S (GPS) for acute myeloid leukemia (AML). The Independent Data Monitoring Committee (IDMC) recommended the trial continue without modifications, citing GPS’s safety and efficacy in surpassing futility criteria and showing a promising median survival rate for patients. With fewer than 50% of patients deceased after a median follow-up of 13.5 months, these results indicate a potential shift in standard care for AML, pending further data upon reaching 80 events. The company is preparing for regulatory submissions, indicating potential transformative impacts on treatment options available for AML patients.