Sana Biotechnology cools after record breaking rally

RerF Sana Biotechnology ( NASDAQ: SANA ) dropped ~10% in the morning hours Thursday as the cell therapy developer pared gains from a 52 week high it reached yesterday following its presentation at the J.P. Morgan Healthcare Conference. About ~3.6M SANA shares have changed hands so far compared to the 65 day average of ~2.6M as the stock continues to trade over 80% below its IPO price in February 2021.

Seeking Alpha contributor Stephen Ayers upgraded SANA to Hold from Sell on Thursday, citing the management’s financial discipline and progress in R&D. However, he points to the stock’s high short interest. The Seattle, Washington based biotech backed by Flagship Pioneering, the venture capital firm behind Moderna ( MRNA ), has almost 20% short interest.

With more than 21M of its shares on loan and a days to cover ratio of ~13.4, this “high interest points to market doubts,” the analyst wrote. More on Sana Biotechnology Sana Biotechnology's One And Done Solution For Diabetes Impresses In NHP Model (Rating Upgrade) Sana Biotechnology: SC291 Moving Forward Beyond Hematological Malignancies Sana Biotechnology: Still Early Days, Lots Of Dilution Ahead Sana Biotechnology hits 52 week high amid rising volumes Sana gets FDA clearance to initiate clinical study for SC262.