Company Articles and Overviews

Is The Worst Yet To Come For Selecta Biosciences?

  • Selecta Biosciences down 50% from just one week ago.

  • Patient death and Pericardial Effusion in 2/4 patients in Phase I trial and underwhelming data from another Phase II trial driving price action down.

  • Dilution for further financing to come soon due to cash position.

  • Chief Medical Officer announces unexpected retirement earlier this year.

Selecta Biosciences does have a pipeline that shows excellent promise. Execution behind their platform has not represented this however. With the company presenting data that was not aligned with the hopes of investors for their Phase II trial of SEL-212, a patient death and another severe adverse event in half of patients dosed in SEL-403 which lead to the halt of the Phase I trial, leave of the chief medical officer in the middle of poor data, and upcoming need for financing due to low cash on hand, the company outlook is not great.

The stock is reaching into oversold territory, down over 50% in the past week, but I would not risk a buy just yet. I can easily see sub $5 in coming months as Selecta has no positive news or data lined up for release and the potential of dilution in the near future leaves me weary of entering. The stock does not react to poor news, or even okay news, well, and I feel a dilution soon can continue the massive downtrend. I would avoid this stock for the foreseeable future.

View full article below

Collin BeloinComment