Sana Biotechnology (SANA) stock soared after the company announced what it believes is a world-first breakthrough for type-1 diabetes treatments.
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Shares of SANA were up about 400% at one stage in after-hours trading on Tuesday, January 7th after the release of positive data from its study of its in-developed treatment for the disease, before paring gains to around 250%, up at $5.84 in the pre-market trade Wednesday after closing at $1.65 on Tuesday.
Transplant Is “Transformational” for SANA Stock
The company said it had successfully transplanted its treatment, UP421, an allogeneic primary islet cell therapy engineered with its hypoimmune technology (HIP), into a patient with type 1 diabetes without the use of any immunosuppression, in a first in-human study of its kind.
Steve Harr, Sana’s President and Chief Executive Officer, said, “As far as we are aware, this is the first study showing survival of an allogeneic transplant with no immunosuppression or immune-protective device in a fully immune competent individual. Safe cell transplantation without immunosuppression has the potential to transform the treatment of type 1 diabetes and a number of other diseases.”
Four weeks after cell transplantation, results of the study showed the survival and function of pancreatic beta cells as measured by the presence of circulating C-peptide, a biomarker indicating that transplanted beta cells are producing insulin.
The company also biomarkers that were consistent with insulin secretion in response to a meal. MRI scanning also demonstrated a sustained insulin signal at the site of transplanted cells over time. The company said there were no safety issues, and the HIP-modified islet cells did not appear to produce an immune response.
TD Cowen Upgrades SANA Based on Results
SANA was upgraded to Buy from Hold on the strength of the trial by TD Cowen analyst Mark Frahm, who thinks it “meaningfully derisks” type 1 diabetes and other applications. And while a lot of commercialization work remains, he says the company “now bears a meaningfully changed risk profile.”
Is SANA Stock a Good Buy?
Overall, Wall Street has a Moderate Buy rating on SANA stock, based on four Buys and three Holds, with no Sell ratings. The average SANA price target for SANA implies more than 600% upside.
