Selecta Biosciences Inc (NASDAQ: SELB) is having an incredibly rough start to the trading session this morning, and for good reason. The company announced that it has been informed of a patient death in its Phase 1 clinical trial. As you could imagine, the news proved to upset investors, sending the stock tumbling down. Today, we’ll talk about:
- The patient death;
- what we’re seeing from SELB stock as a result; and
- what we’ll be watching for ahead.
SELB Announces Patient Death
As mentioned above, Selecta Biosciences is having an incredibly rough start to the trading session this morning after the company reported a patient death. Recently, the comapny reported that the National Cancer Institute informed it of a patient that died from pneumonitis during a Phsase 1 clinical trial. In the trial SELB was assessing SEL-403 in patients with solid tumors. It is believed that the death is related to SVP-Rapamycin, which is one of the compounds found in SEL-403.
To date, a total of four patients have been dosed in the SELB study. Unfortunately, the death has not been the only serious adverse event. In fact, one patient experienced pericardial effusion, a potential side effect of immunotoxin therapies that target mesothelin. The company said that no patients are active in the study at the moment and all enrollment into the study has stopped.
It’s also important to mention that SVP-Rapamycin is also featered in SEL-212, a treatment that is being investigated in a Phase 2 study as an option for patients with symptomatic gout. To date, there have been no cases of pneumonitis among the 150 patients that have been dosed to date.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Selecta Biosciences, the news proved to be overwhelmingly positive. First and foremost, the patient death will likely lead to the company scrapping the Phase 1 clinical trial and could lead to issues with the SEL-212 candidate. So, it comes as no surprise that upset investors are sending the stock tumbling down in the market this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (8:53), SELB is trading at $13.96 per share after a loss of $1.34 per share or 8.76% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SELB. In particular, we’re interested in following the story surrounding SEL-403 to see if the company scraps the asset after 50% of treated patients experienced serious adverse events and one of them or 25% died as a result. We’ll also be watching to see if the news leads to issues with regard to SEL-212. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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