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Why Seelos Therapeutics Stock Is Skyrocketing Today

By Keith Speights - Mar 12, 2021 at 11:44AM

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An analyst is really bullish about the biotech stock.

What happened

Shares of Seelos Therapeutics (SEEL 7.75%) were skyrocketing 35.2% higher as of 11:01 a.m. EST on Friday. The huge gain came after BTIG initiated coverage on the stock with a buy recommendation and a one-year price target nearly 4.7 times higher than Seelos' closing price on Thursday.

So what

Investors shouldn't buy a biotech stock (or any other stock, for that matter) just because an analyst likes it. However, it's always a good idea to gain an understanding of the reasons behind the bullish view.

Man wearing a suit and tie giving a thumbs-up

Image source: Getty Images.

In this case, BTIG analyst Robert Hazlett likes the prospects for Seelos' pipeline. Last week, the biotech announced that it had completed enrollment in a pivotal proof-of-concept study evaluating SLS-002 in treating acute suicidal ideation and behavior in patients with major depressive disorder. 

Seelos also has two other clinical-stage candidates. It's evaluating SLS-005 in phase 2 studies for three neurodegenerative disorders: amyotrophic lateral sclerosis (ALS), rare genetic disease Sanfilippo syndrome, and oculopharyngeal muscular dystrophy.

Now what

The drugmaker should report key data from its study of SLS-002 in the second quarter of this year. Seelos also plans to advance SLS-005 into a pivotal phase 2b/3 clinical study targeting ALS in the first half of the year.

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