Shares of Sana soar following breakthrough in diabetes therapy trials

The stock price of Sana Biotechnology surged 160% on January 8, with intraday gains exceeding 300%. The company announced a groundbreaking achievement: successfully transplanting insulin-producing pancreatic cells into a patient with type 1 diabetes without the need for immunosuppression. Sana hopes this breakthrough will revolutionize the nearly $100 billion diabetes treatment market. Analysts see potential for the company’s shares to more than double in value.

Details

Sana Biotechnology shares on Nasdaq climbed 160.6% on Wednesday, January 8, closing at $4.30 per share. The dramatic rise in the company’s stock began during after-hours trading on Tuesday, January 7. On Wednesday, the stock briefly spiked more than 340%, exceeding $7 per share. However, over the last 12 months, Sana’s shares have declined more than 40%.

The surge followed the company’s announcement on Tuesday of positive clinical trial results for the transplantation of pancreatic islet cells into a patient with type 1 diabetes without the use of any immunosuppression. 

Pancreatic islet cells produce insulin, which helps regulate blood sugar levels. In individuals with type 1 diabetes, the immune system destroys these cells, causing dangerously high blood sugar levels. To manage the condition, patients must rely on lifelong insulin injections.

Islet cell transplantation has been considered a potential treatment for diabetes, according to a medical reference guide by pharmaceutical company MSD (Merck & Co.). The procedure involves harvesting the pancreas from a recently deceased donor, isolating the islet cells, and injecting them into a patient with severe diabetes. Approximately 75% of patients who undergo this procedure are able to stop insulin therapy after one year, but the long-term efficacy remains unproven. Additionally, patients must take immunosuppressants to reduce the risk of transplant rejection, which suppress the immune response.

What Sana Biotechnology achieved and why it matters

Sana Biotechnology reported that, as part of its trials, a type 1 diabetes patient received a transplant of islet cells modified with Sana’s hypoimmune technology. This was accomplished without the use of immunosuppression. Data collected four weeks after the transplantation showed that the cells survived, produced insulin, and avoided adverse immune reactions, according to the company. Additionally, no safety concerns were observed during the study.

“The clinical data are highly promising for patients and provide the first evidence in humans for overcoming allogeneic (donor. – Kursiv) and autoimmune rejection with pancreatic islet cell transplantation in type 1 diabetes with no immunosuppression,” said Per-Ola Carlsson, Study Principal Investigator, Senior Physician and Professor at the Clinic for Endocrinology and Diabetology at Uppsala University Hospital, a trial partner. His comments were included in Sana’s press release.

Safe cell transplantation without immunosuppression has the potential to transform the treatment of type 1 diabetes and a number of other diseases, noted Steve Harr, Sana’s president and CEO, in the same release.

Analyst insights

According to MarketWatch, seven analysts currently cover Sana Biotechnology. Of these, five rate the stock as a “buy,” and two recommend holding it. There are no sell ratings. The average target price is $10 per share, implying more than 100% upside from the latest closing price.

The market for diabetes treatments was valued at $87.53 billion in 2024 and is projected to grow to $104 billion by 2029, according to research firm Mordor Intelligence.