Why Seelos Therapeutics Stock Is Trading Higher Today

Seelos Therapeutics Inc SEEL is trading higher Monday after Roth Capital analyst Jonathan Aschoff upgraded the stock from Neutral to Buy and raised the price target from $2.50 to $8.

The Roth Capital analyst said the firm's optimism has increased, citing "the stock having found far firmer ground and the transience of the increase in CADSS."

Three encouraging features of the ongoing SLS-002 trial came from observing faults with the Spravato trials, Aschoff said: "Requirement for suicidal behavior prior to receiving treatment rather than just ideation, exclusion of benzodiazepine use within eight hours of dosing and a process put in place to avoid randomizing patients that are likely to respond to placebo."

The upgrade and new price target were driven by SLS-002 royalties from sales in the U.S. and Europe. Aschoff noted that the company could be an acquisition target.

Seelos Therapeutics is a clinical-stage biotechnology company that focuses on developing products that address significant unmet needs in central nervous system disorders and other rare disorders.

SEEL Price Action: Seelos Therapeutics has traded as high as $6.60 and as low as 56 cents over a 52-week period.

The stock was up 17.90% at $2.47 at time of publication.