After providing both a financial update and a clinical update, SELLAS Life Sciences Group Inc (NASDAQ: SLS) is having an incredibly strong start to the trading session this morning. There’s a lot to talk about here, so let’s just jump right in shall we?
SLS Announces Clinical News
The news releases started early this morning with a press release surrounding clinical data. In the release, SELLAS Life Sciences said that data from a preplanned secondary efficacy analysis across human leukocyte antigen (HLA) allele subgroups from a Phase 2b clinical trial was positive. The trial assessed the combination of nelipepimut-S (NeuVax, NPS) and trastuzumab (Herceptin) as an option for patients with HER2 low-expressing breast cancer.
SLS said that the data has been accepted to be presented at the 33rd Annual Meeting of the Society for Immunotherapy of Cancer (SITC). The meeting started on November 7th and will run through November 11th, 2018.
In the release, the company said that the data confirm the therapeutic potential of NPS for patients with early stage TNBC in the adjuvant setting accross various HLA types. The types covered represent between 80% and 85% of the North American and European population and 86% to 90% of the Asian/Pacific basin populations.
Finally, in a subgroup of patients with the HLA-A24+ allele type, a 90.6% relative reduction in risk of relapse or death at 24 months was seen. This particular HLA is a highly prevalent in the Asian population.
In a statement, Dr. Angelos Stergiou, MD, ScD h.c., President and CEO at SLS, had the following to offer:
These data not only confirm the clinical effect of the NPS plus trastuzumab combination in TNBC, which we recently announced at ESMO with a p-value of 0.013 and a 75% relative reduction in the risk of relapse or death, but also positions NPS biologically as an agent that could potentially be used globally, considering the high prevalence of the HLA-A24 allele in populations across the Pacific basin and Asia. We are scheduled to meet with the U.S. regulatory authorities in December 2018 on the most optimal and expeditious development path for NPS in TNBC, and continue to advance ongoing interactions with potential partners.
In other news, SELLAS Life Sciences also provided a financial update. In another press release, the company announced that it has agreed to a settlement with JGB (Cayman) Newton, Ltd. This settlement is in regard to the company’s counterclaims against JGB.
According to the settlement, JGB has paid SLS about $6.6 million in exchange for a full discharge of all claims and counterclaims in ongoing litigation. The two companies have also agreed to terminate the debenture agreement and related agreements. In a statement, Dr. Stergiou had the following to offer about the settlement:
We are pleased with both the Court’s order dismissing all of the claims made by JGB and the settlement with JGB of our counterclaims… Terminating this legacy Galena facility and putting the litigation behind us after having been made whole is an important milestone for SELLAS. The cash settlement of $6.6 million further bolsters our balance sheet to support our strategic objectives.
What We’re Seeing From The stock
We know that the news moves the market, and when it comes to SELLAS Life Sciences, the news was positive. After all, not only did the company offer up positive clinical data, the settlement will help to bulster the company’s balance sheet. So, it’s not surprising to see that excited investors are sending the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:16), SLS is trading at $2.11 per share after a gain of $0.24 per share or 12.83% so 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 SLS. In particular, we’re interested in following the story surrounding the company’s continued work to bring its cancer therapies to market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!