Selecta Biosciences, Inc.

Selecta ended Q1 2023 with $127.5 million of cash, cash equivalents, restricted cash and marketable securities. Q1 2023 revenue was $5.9 million versus $34 million in Q1 2022, driven mainly by clinical supply shipments and reimbursement of Phase III DISSOLVE costs. Q1 2023 R&D expense was $18.6 million versus $17.7 million a year ago; G&A was $5.7 million, slightly above Q1 2022; net loss was $21.7 million, or $0.14 per basic share. On SEL-212, DISSOLVE I and II both met primary endpoints, with 56% response in the U.S. study and 47% in the global study at the 0.15 mg/kg dose; in patients age 50 or older, response was 65% in the U.S. study and 48% in the global study. Management said the current cash balance plus expected SEL-212 milestone income should fund operations into the second half of 2025, and it expects about a $1 million cash charge in Q2 for severance and benefits after the workforce reduction.

Carsten Brunn framed the quarter as a major validation event, highlighting the two positive Phase III SEL-212 studies as proof of concept for ImmTOR and a potential new treatment option for chronic refractory gout. He said the company’s strategy now is to concentrate resources on the programs with the highest probability of success, especially ImmTOR IL in autoimmune liver disease, while continuing to support Sobi and Astellas partnerships. His tone was constructive but pragmatic, stressing capital discipline and saying the company had to make difficult prioritization choices in the current market environment.

Blaine Davis focused on the financial reset tied to the strategic review. He cited Q1 cash of $127.5 million, Q1 revenue of $5.9 million, R&D of $18.6 million, G&A of $5.7 million, and net loss of $21.7 million, and he said the company expects a roughly $1 million severance-related cash charge in Q2. He also said Sobi reimburses activities tied to the BLA preparation, completion of clinical trial work, and the manufacturing component on ImmTOR, and that the strategic changes should reduce R&D more noticeably in future quarters and somewhat reduce G&A, supporting runway into the second half of 2025.

Analysts focused on three main areas: the ImmTOR IL liver strategy, the economics and timing of the Sobi partnership, and the rationale for pausing MMA gene therapy and other assets. Management said autoimmune liver diseases are attractive because they are T-cell mediated, include a known antigen in PBC, and have substantial unmet need, with PSC lacking therapies and the field moving toward stricter endpoints such as ALP normalization. On Sobi, management said the market environment and DISSOLVE readouts did not affect the relationship or milestone expectations, and on MMA and IgA nephropathy, it said the pauses are resource-driven rather than program-specific failures, with the intent to seek partnerships and preserve cash.