Stock in Focus: Selecta Biosciences (SELB)

Company Profile:

Selecta Biosciences, Inc. operates as a clinical-stage biopharmaceutical company, which engages in the research and development of nanoparticle immunomodulatory drugs for the treatment and prevention of human diseases. The company’s lead product is SEL-212 that has completed Phase II clinical trials for the treatment of chronic refractory gout. It also engages in the development of gene therapy product candidates that are in preclinical development for rare inborn errors of metabolism, including SEL-302, a therapy program for the treatment methylmalonic academia; and SEL-313, a product candidate to treat ornithine transcarbamylase deficiency. Selecta Biosciences, Inc. was founded in 2007 and is headquartered in Watertown, Massachusetts.

Recent News:

On Oct. 08, 2020, the company and IGAN Biosciences, Inc. have entered into a Research License and Option agreement to study Selecta’s ImmTOR™ immune tolerance platform in combination with IGAN’s immunoglobulin A (IgA) protease for the treatment of IgA Nephropathy (IgAN).

On Sept. 01, 2020, the company has entered into a debt financing facility for up to $35 million with Oxford Finance and Silicon Valley Bank (SVB). Proceeds from the financing will be used to retire $12.6 million of existing debt, advance Selecta’s ImmTOR pipeline in gene therapy and autoimmune diseases, and for selected business development activities.

For the second quarter 2020, Selecta reported a net loss of $24.1 million, or $0.25 per share, compared to a net loss of $16.4 million, or $0.37 per share, for the same period in 2019.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SELB’s strengths can be seen in its strong growth compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and The RSI stands at 43.58 with positive bias. We rate Selecta Biosciences (SELB) a STRONG BUY.