SEATTLE - Sana Biotechnology, Inc. (NASDAQ: SANA), a cell engineering company, announced today it is shifting its development priorities towards therapies for autoimmune diseases and type 1 diabetes, extending its cash runway into 2026. The Seattle-based firm will focus on its SC291 and UP421 programs for B-cell mediated autoimmune diseases and type 1 diabetes, respectively, with multiple data readouts expected in the next two years.
The redirection of resources will result in the suspension of the SC291 oncology program and the SC379 glial progenitor cell program. Sana is actively seeking partnerships to continue these suspended programs. This strategic pivot aims to leverage early clinical data suggesting that Sana's hypoimmune platform (HIP) can create cells capable of evading immune detection, which could be transformative across multiple therapeutic areas.
Sana's President and CEO, Steve Harr, emphasized the company's commitment to areas with the greatest potential patient impact. The decision was influenced by the necessity to reduce cash burn, which may result in an increased operating cash burn for 2024 above the previously guided figure of less than $200 million.
The company's ongoing clinical trials include the GLEAM trial for SC291 in autoimmune diseases and the VIVID study for SC262 in refractory B-cell malignancies. The latter targets patients who have not responded to previous CD19-directed CAR T therapy, with results anticipated in 2025. Preclinical development continues for SC451, a stem-cell derived therapy for type 1 diabetes, and SG299, a fusogen platform for in vivo CAR T cells.
Dr. Dhaval Patel, Sana's Chief Scientific Officer, expressed optimism about the novel approach to treating type 1 diabetes and the potential benefits to patients. He highlighted the observed clinical benefits of SC291 in autoimmune diseases, such as lupus, due to its ability to deplete B cells and reset the immune system.
This strategic refocus is based on the company's evaluation of its pipeline and competitive landscape, with the goal of maximizing the impact of its most promising therapeutic candidates. This announcement is based on a press release statement from Sana Biotechnology.
In other recent news, Sana Biotechnology has experienced several noteworthy developments. The company's Chief Financial Officer, Nathan Hardy, is set to step down from his position on October 4, 2024, citing personal reasons for his departure. In the same vein, Sana Biotechnology has appointed Dhaval Patel, M.D., Ph.D., as its new Executive Vice President and Chief Scientific Officer, a move that is anticipated to bolster the company's clinical pipeline and innovation.
The company is also making headway in its Type 1 diabetes (T1D) trial. After enrolling several T1D patients in an Interventional Study in Uppsala, Sweden, Sana Biotechnology expects to report data for the first patient approximately 30 days post-dosing. This progress in the T1D trial prompted Citi to increase its price target for Sana from $8.00 to $15.00, while maintaining a Buy rating.
Citi has also initiated a 90-day Catalyst Watch, expressing optimism for potential significant appreciation in Sana Biotechnology's performance should the forthcoming T1D data prove positive. These recent developments underscore Sana Biotechnology's ongoing commitment to advancing science and delivering transformative therapies to patients.
InvestingPro Insights
Sana Biotechnology's strategic shift towards autoimmune diseases and type 1 diabetes aligns with its current financial position and market challenges. According to InvestingPro data, the company has a market capitalization of $843.15 million, reflecting its position as a developing biotechnology firm.
InvestingPro Tips highlight that Sana "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations," which supports the company's claim of extending its cash runway into 2026. This financial stability is crucial as Sana redirects its resources to focus on SC291 and UP421 programs.
However, investors should note that Sana is "quickly burning through cash" and is "not profitable over the last twelve months," with an adjusted operating income of -$296.0 million for the last twelve months as of Q2 2024. This context underscores the importance of Sana's decision to prioritize programs with the greatest potential patient impact and market opportunity.
The company's stock performance has been challenging, with InvestingPro data showing a -64.94% price total return over the past six months. This decline aligns with the InvestingPro Tip that the "stock has taken a big hit over the last six months." Despite these challenges, analysts have set a fair value target of $13 per share, significantly above the previous closing price of $3.66, suggesting potential upside if Sana's new strategy proves successful.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights, with 8 more tips available for Sana Biotechnology on the platform.
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