Seelos Therapeutics (NASDAQ:SEEL) is on the move today. Currently, shares of SEEL stock are up nearly 50% on some bullish news.
Let’s dive into what this biotech company does, and why investors are piling into this trade today.
What Does Seelos Do?
Seelos is a biotech company focused on therapeutic solutions addressing “significant unmet needs in CNS disorders and in rare diseases.”
The company’s pipeline of drugs is actually very impressive. Indeed, the ability for this company to address a wide range of niche disorders and diseases with significant prevalence is encouraging to investors. Seelos is in the development stage of drugs tackling everything from PTSD and depression to Parkinson’s, ALS, esophagitis, dermatitis and post-op pain.
Investors have focused in on a few key drugs helping patients with depression and with PTSD.
Why Are Investors and Analysts Bullish on SEEL Stock?
In particular, last week’s announcement that enrollment has been completed for Seelos’ SLS-002 drug targeting depression is stirring up excitement in the market. Indeed, investors are cheering this news, as it provides a greater line of sight toward the product development timeline of this key drug.
Seelos has noted it expects to be able to share some efficacy and safety results in the second quarter. This comes as Part 1 of this two-part study wraps up April 1. Accordingly, it’s expected the double-blind, placebo-controlled study (Part 2) will commence shortly thereafter.
That’s great, but investors may still be wondering: Why the massive jump today?
Well, today BTIG initiated coverage on this stock. The verdict was positive, to say the least. BTIG analyst Robert Hazlett put a $14 price target on SEEL stock. This has been seen as an emphatic validation of this company and its drug pipeline. Indeed, Hazlett sides with the company on the potential impact this drug could have. He sees the potential for the company’s depression-focused drug to address a significant unmet need in the market. Additionally, other drugs in the pipeline targeting ALS and Parkinson’s have piqued his interest.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.