On Thursday, H.C. Wainwright reaffirmed a positive stance on Sangamo BioSciences (NASDAQ:SGMO), maintaining a Buy rating and a $10.00 price target. Currently trading at $1.02 with a market capitalization of $213 million, the biopharmaceutical company recently announced it would take back rights to its gene therapy candidate, giroctocogene fitelparvovec, from Pfizer (NYSE:PFE). This gene therapy is aimed at treating adults with moderately severe to severe hemophilia A.
The announcement, made after market close on December 30, initially led to a significant drop in Sangamo's stock price, which fell more than 50% intraday. According to InvestingPro data, the stock has plunged 61% in the past week, with technical indicators suggesting oversold conditions. This decline was in stark contrast to the slight increase in the XBI biotech index, which rose 0.50% on the same day. Despite the sell-off and historically high price volatility, the H.C. Wainwright analyst expressed confidence in Sangamo's pipeline programs, which are considered key to the firm's valuation.
Sangamo's diverse pipeline includes isaralgagene civaparvovec (ST-920 or isa-vec), a gene therapy program for Fabry disease, and STAC-BBB, an innovative approach targeting the central nervous system with the potential to penetrate the blood-brain barrier. The analyst attributes a value of $4 per share to isa-vec and another $4 per share to Sangamo's neurology-focused pipeline, underscoring the potential of these programs.
The reiteration of the Buy rating and price target reflects H.C. Wainwright's view that Sangamo's stock is currently undervalued, especially considering the upcoming updates on the Fabry program and the neurology pipeline. With analyst targets ranging from $2 to $10 and a consensus Buy recommendation, the firm anticipates these developments could positively influence the company's share value. Discover more insights and 13 additional ProTips about SGMO with an InvestingPro subscription, including detailed analysis of the company's financial health and growth prospects.
In other recent news, Sangamo BioSciences has faced significant developments. Pfizer's decision to terminate its global collaboration with Sangamo has led to the discontinuation of the Biologics License Application and Marketing Authorization Application for giroctocogene fitelparvovec, a gene therapy for hemophilia A. Despite this, Sangamo has indicated it will seek a new partner to extend its cash runway. In response to these changes, Wells Fargo (NYSE:WFC) has revised Sangamo's price target and the firm's 2025 earnings per share estimate.
Simultaneously, Sangamo has entered a $20 million licensing agreement with Astellas Pharma, potentially bringing Sangamo up to $1.3 billion in milestone payments and tiered royalties on net sales of products developed through the collaboration. Truist Securities has upgraded Sangamo's stock from Hold to Buy, highlighting key developments such as a potential Biologics License Application and Marketing Authorization Application filing for a Phase 3 Hemophilia A gene therapy in early 2025.
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