Selecta Biosciences, Inc. (SELB) is a clinical-stage biopharmaceutical company. The company using its synthetic vaccine particle (SVP) technology to discover and develop targeted therapies that are designed to modulate the immune system to treat rare and serious diseases. Selecta Biosciences’ is engaged in the research and development of nanoparticle immunomodulatory drugs for the treatment and prevention of human diseases.
The company’s lead product candidate, SEL-212, is a combination of a therapeutic enzyme and its SVP technology designed to be the biologic treatment for gout.
Gout is a common form of inflammatory arthritis that is very painful. Total spending on gout patients reached $53 billion in 2015. There is no cure for gout, but you can effectively treat and manage the condition with medication and self-management strategies (an estimated 22.7% or 54.4 million adults had doctor-diagnosed arthritis).
Two agreements Selecta Biosciences, Inc. has entered :
- License Agreement for Pompe Disease(12/19)- Pursuant to the AskBio License Agreement and ancillary documents, AskBio agreed to pay to the Company upfront fees of an aggregate of $7.0 million. Assuming successful development and commercialization, the Company could receive up to an additional $237.0 million in development, regulatory, and sales milestone payments. If commercialized, the Company would be eligible to receive tiered royalties on global net sales at percentages ranging from mid-to-high single digits.
- MIT Agreement (yes, the almighty MIT)- On December 13, 2019, the Company entered into the Fourth Amendment (the MIT Amendment) to the Exclusive Patent License Agreement by and between the Company and the Massachusetts Institute of Technology (MIT) (the MIT Agreement). Pursuant to the MIT Amendment, a provision of the MIT Agreement under which the Company was obligated to initiate a Phase 3 clinical trial for a licensed product by a specified date in the fourth quarter of 2019 is tolled until the earlier of (i) a specified date in the second quarter of 2020.
Biggest deal Selecta Biosciences, Inc. (SELB) has acquired is the one with Swedish Orphan Biovitrum (SOBI)
Swedish Orphan Biovitrum is licensing a gout treatment called SEL-212 worldwide, except China. They are paying $75M upfront and buying $25M worth of shares at $4.62 (That’s about 5.4M shares, or a dilution of approximately 6.2%). Additionally, there are potential milestone payments worth up to $630M and double-digit royalties paid to Selecta Biosciences, Inc. on net sales of SEL-212.
NOTE: China is currently the largest market for Gout disease in the world which SELB still has the rights to!
On 7/28 SELB announced the closing of the deal with SOBI, thus receiving $75m and SOBI purchasing over 5 million shares of common stock at a $4.62.
SELB currently has an institutional ownership of around 57% (investment firms believe very strongly in this stock to own this much of it! Very strong indicator for great things to come!).
Upcoming catalysts
Results for the Head-to-Head COMPARE Trial of SEL-212 in which this should be announced any day now!
The company has confirmed as recently as one week ago that the results for the phase 2 head to head results will be released by the end of this month, which leaves a couple of days!
Just this yesterday SELB released news stating the initiation of phase 3 study for SEL-212 and the commencement of recruitment for the study. This is the phase 3 study for SEL-212.
A company will not commence a phase 3 study for a drug when it’s phase 2 study flopped. I assume results must be good in order to proceed to phase 3 study.
This stock is a gold mine. It has so much upside and upcoming potential for short (Phase 2 results) and medium-long term swing for other catalysts. I believe right now is a great entry point for this stock in anticipation for it’s Phase 2 Head to Head results which I assume will be positive because they initiated a phase 3.
Should you invest in Selecta Biosciences, Inc. (SELB)?
Shares of Selecta Biosciences, Inc. (SELB) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next several years. The majority of the metrics point to this investment being highly attractive.
