Part A results from the trial of Seelos Therapeutics Inc’s SEEL intranasal ketamine product candidate, SLS-002, and the clarity around the timing of the Part B data release call for a change in recommendation, according to Roth Capital.
The Seelos Therapeutics Analyst: Jonathan Aschoff upgraded the rating for Seelos Therapeutics from Neutral to Buy and raised the price target from $2.50 to $8.
The Seelos Therapeutics Thesis: Part B results from the SLS-002 trial are expected to be released in the first half of 2022, Aschoff said in the upgrade note.
“As we get closer to the release of results from Part B of SEEL's potentially pivotal SLS-002 trial, slated for 1H22, we have reconsidered our earlier assessment of the drug's safety risk as measured via CADSS (reflects dissociation),” the analyst said.
“We also recognize the substantial impact that SLS-002 had upon the MADRS, CGIS-SI/B, S-STS, PGIS-SI/B, and MADRS Item 10 endpoints compared to baseline, regardless of when they were measured,” he said.
“Our previous downgrade, which was well-timed, had in large part taken into consideration the fact that share price had increased substantially going into the release of Part A data, but we believe that shares have found far firmer ground over the past few months,” Aschoff said.
SEEL Price Action: Shares of Seelos Therapeutics were trading 15.07% higher at $2.40 late in Monday's session.
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