Short Sellers Circle Sellas Life Sciences as Phase 3 Data Nears

The clock is ticking for Sellas Life Sciences, and the stakes could hardly be higher. With just eight clinical events separating the biotech from a pivotal data readout in its REGAL study, the stock has already surged more than 178% over the past twelve months to trade at €4.15. Yet beneath that rally lies a powder keg of short interest that could either ignite a further explosion or extinguish the gains entirely.

The 80-Event Threshold

At the heart of the matter is Galinpepimut-S (GPS), the company's experimental therapy for acute myeloid leukemia (AML). The REGAL Phase 3 trial is event-driven, requiring 80 deaths for its final analysis. As of late December 2025, that count stood at 72. CEO Angelos Stergiou has suggested the slow pace of events may itself be encouraging, potentially indicating that patients are surviving longer than statistical models would predict.

Once the 80th event occurs, the data will be unblinded. A positive outcome would clear a path toward regulatory approval. A miss, however, could abruptly halt what has been a roughly 45% year-to-date rally.

Institutional Moves and Financial Firepower

While the market waits, major players are positioning themselves. Deutsche Bank increased its stake by 50% during the first quarter of 2026, building a position of approximately 137,600 shares. The bank joins a growing list of institutional investors betting on a favorable readout.

Should investors sell immediately? Or is it worth buying Sellas Life Sciences?

Sellas has also been busy strengthening its balance sheet. Warrant exercises generated $42.6 million in the first quarter, adding to the roughly $72 million in cash the company held at the end of 2025. That war chest provides a cushion regardless of the trial outcome, though a failure would likely force a strategic reassessment.

Short Sellers Circle

The elevated short interest adds a layer of drama. Days to cover stand at more than 13, meaning it would take nearly three weeks of average trading volume for bears to close their positions. If the REGAL data surprises to the upside, the resulting short squeeze could amplify gains dramatically. Conversely, negative results would validate the skeptics and likely trigger a sharp selloff.

Expanding the Pipeline

Beyond GPS, Sellas is advancing SLS009, a CDK9 inhibitor that has shown a 46% response rate in heavily pretreated AML patients. A partnership with the IMPACT-AML network will expand clinical research into Europe, with the first patients expected to begin enrollment in a new study during the second quarter of 2026.

Sellas Life Sciences at a turning point? This analysis reveals what investors need to know now.

What's Next

The company reports first-quarter earnings in May 2026, with analysts forecasting a loss of $0.06 per share. But the earnings call will be a sideshow compared to the main event. All eyes are on the 80th event in REGAL. Analysts have set price targets as high as $10.00, more than double the current level. For a stock already up 178% in a year, the next few weeks will determine whether that trajectory continues or reverses.

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