SELLAS Life Sciences' 2Q disappoints despite FDA progress with cancer therapy drug

SELLAS Life Sciences Group Inc (NASDAQ:SLS) announced its second-quarter results Wednesday, reporting a narrower net loss than last year but still missing analysts’ earnings estimates.

The biotech reported a net loss of US$1.26 per share compared with a net loss of US$4.50 per share in the previous year’s second quarter. 

The earnings results came in below analyst expectations of a loss of US$1.03 per share.

Its net loss attributable to common stockholders totaled US$8.5mln compared with a net loss of US$5.9mln in the previous second quarter.

Shares of SELLAS fell more than 9% to US$0.98 in Wednesday morning trading. The clinical-stage biopharmaceutical company develops immunotherapeutics to treat a variety of cancers.

READ: Maxim reiterates Buy rating after SELLAS Life Sciences’ cancer vaccine gets Fast Track designation

Research and development expenses totaled US$1.6mln, down from US$1.8mln in the previous second quarter.

The US Food and Drug Administration granted Fast Track designation to its lead product candidate, galinpepimut-S. The FDA also granted orphan drug designation to the drug for the treatment of multiple myeloma, a cancer of plasma cells.

Phase 3 clinical trials are planned for GPS in two indications, acute myeloid leukemia and malignant pleural mesothelioma. It may also be a treatment for ovarian cancer.

The New York-based biotech held a public offering in July, generating US$21.6mln to fund further trials.

Story by ProactiveInvestors