Sellas Life Sciences (SLS) Stock Gains Ahead Of Data

Sellas Life Sciences SLS Stock News

After gaining more than 13% in yesterday’s trading session, Sellas Life Sciences Group Inc (NASDAQ: SLS) is heading for the top in the market this morning yet again. So far, the stock is trading on gains of more than 4%.

While the company hasn’t issued any news as of late, there’s a good reason for the upward movement. Data from a Phase 2 trial in the treatment of breast cancer is just around the corner, and considering recent activity, it could prove to be a catalyst that sends this stock screaming for the top. Here’s what’s happening:

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SLS Stock Could Fly On Coming Data

The past six months hasn’t been great for Sellas Life Sciences. As bears took hold of the stock it fell dramatically, from nearly $1.50 per share to $0.15 per share. Nonetheless, positive news may be just around the corner and has the potential to trigger a short squeeze.

For some time now, SLS has been working on a trial dubbed VADIS. The trial is assessing the combination of Nelipepimut-S and GM-CFS Vaccine therapy in the treatment of patients with breast cancer.

Interestingly, the study was completed on June 27, 2019, about a month ago. On July 18, 2019, SLS posted an QC update on the trial, pushing us closer to the data release.

In most cases, primary data comes shortly after QC publications. As such, it’s expected that data from this trial will be released by no later than July 31, 2019.

This Could Be Huge

Once the data is released, if positive, it could prove to be a huge turning point for Sellas Life Sciences for multiple reasons:

  • Positive data from a Phase 2 clinical study would likely set the stage for an entrance into a pivotal Phase 3 study of the combination drug. If this takes place, the company would be just one positive clinical trial away from a New Drug Application submission.
  • Moreover, the target of the clinical trial is a very high value indication. In fact, it is estimated that by the year 2025, the breast cancer market will grow to be worth $38.4 billion annually. For a company with a market cap just over 30 million, an entrance into a market with such a high value would likely result in meaningful growth in value for SLS and its investors.
  • Finally, if the Phase 2 data is positive, it has real potential to trigger a short squeeze. In recent times, the shorts have been holding on tight. However, shorts lose money when a shorted stock sees gains. Positive data would likely lead to gains that will spook the shorts. If this takes place, the potential growth as a result of the positive results would likely be compounded by the short squeeze that it would trigger.

The Bottom Line

The bottom line is simple. SLS stock is trading on lows as a result of shorts taking control of the stock. However, with data around the corner, and that data likely to be positive, there’s a real opportunity for those that get in now to see serious gains in the short term. Moreover, if the data is positive, the long-term potential would be incredible considering the high-value indication being targeted here. All in all, if you’re not watching Sellas Life Sciences now, you’re likely making a mistake!

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