Selecta's (SELB) Q3 Loss Narrower-Than Expected, Revenues Beat

Selecta Biosciences Inc. SELB is engaged in developing tolerogenic therapies that selectively mitigate unwanted immune responses. The company’s lead pipeline candidate SEL-212 is a combination of its ImmTOR immune tolerance platform and a therapeutic uricase enzyme pegadricase.

Selecta along with Swedish Orphan Biovitrum AB (Sobi) is evaluating SEL-212 in the phase III DISSOLVE program for addressing chronic refractory gout. Another head-to-head phase II COMPARE study is investigating SEL-212 versus pegloticase to treat patients with chronic refractory gout.

Selecta has out-licensed SEL-212 to Sobi as the latter is now responsible for the development and commercial activities in all territories outside China.

Selecta’s surprise record has been mixed so far as its bottom line beat estimates in two of the trailing four quarters and lagged the same on the other two occasions, the average miss being 42.79%. In the last reported quarter, Selecta witnessed a negative earnings surprise of 153.13%.

Currently, Selecta has a Zacks Rank #5 (Strong Sell). We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Selecta reported a loss of 0.09 cents per share in the third quarter of 2020, which was narrower than the Zacks Consensus Estimate of a loss of 12 cents.

Revenues: Selecta generated total revenues of $4.6 million during the third quarter beating the Zacks Consensus Estimate of $3.75 million.

Key Stats: Selecta generated $4.3 million revenue under the license agreement with Sobi and $0.3 million for under the collaboration agreement with Sarepta.

2020 Guidance: Selecta expects that its cash, cash equivalents and marketable securities as of September 30, 2020 will be able to fund its anticipated operating expenses and capital expenditure requirements at least through the first quarter of 2023.

Share Price Impact: Shares were down 7.9% in pre-market trading.

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