Here's Why Selecta Biosciences Is Tumbling Today

Shares of Selecta Biosciences (NASDAQ: SELB) fell more than 25% today as investors signaled their lack of confidence in the company's trajectory. Yesterday, the biopharma announced it had licensed its lead and only drug candidate to Swedish biopharma Sobi. The licensing agreement essentially monetizes the late-stage asset and allows the company to focus on new gene therapy programs and partnerships, the first of which is expected to begin clinical trials before the end of 2020.

But Stifel Nicolaus analyst Derek Archila cautioned investors to remain grounded. He downgraded Selecta Biosciences stock from a buy rating to a hold rating and reduced his price target to $4 per share. Ironically, that's roughly where the stock price rested at market close yesterday, but investors are taking their money and putting it elsewhere.

As of 11:56 a.m. EDT, the small-cap stock had settled to a 24.1% loss.

Source Fool.com