Sell Rating on Silence Therapeutics Due to Suboptimal Dosing, Financial Constraints, and Competitive Lag

Silence Therapeutics (SLN) has received a new Sell rating, initiated by Goldman Sachs analyst, Richard Law CFA.

Richard Law CFA has given his Sell rating due to a combination of factors affecting Silence Therapeutics. The company’s lead asset, zerlasiran, which is aimed at treating atherosclerotic cardiovascular disease, shows promising reductions in Lp(a) levels. However, the therapeutic effects between dosing intervals suggest that the current dosing schedule may not be optimal, as it lacks differentiation from competitors, and more frequent dosing might be necessary.
Furthermore, the development timeline for zerlasiran lags significantly behind other companies in the same market, posing challenges in a competitive landscape. The financial constraints faced by Silence Therapeutics also impede their ability to complete the costly Phase 3 CVOT. Additionally, the uncertainty around securing a development partner before the anticipated results of NVS’s HORIZON trial adds to the concerns. These factors collectively contribute to a lower perceived upside potential for SLN shares, thus supporting the Sell rating.