On Friday, Truist Securities shifted its stance on Sangamo BioSciences (NASDAQ:SGMO), raising the stock's rating from Hold to Buy and setting a price target of $7.00. Currently trading at $1.91 with a market cap of $398.52 million, the stock has shown remarkable momentum with a 336% return over the past year. The upgrade follows a positive evaluation of the company's streamlined expenses and potential for business development in the near future.
The analyst from Truist Securities highlighted several key developments that could contribute to Sangamo's upside in the next 12 to 18 months. These include a potential Biologics License Application (BLA) and Marketing Authorization Application (MAA) filing for a Phase 3 Hemophilia A gene therapy in early 2025. This filing could also prompt a milestone payment for the company, which could be crucial as InvestingPro data indicates the company is quickly burning through cash.
Additionally, full data for the treatment of Fabry disease is expected in the first half of 2025, with a potential BLA filing in the second half of the year. This progress may make Sangamo an attractive partner for advancing the treatment.
The analyst also noted the growing interest in Sangamo's platform from business development (BD) prospects, which could provide the company with non-dilutive funding through upfront cash. Moreover, Sangamo's internal pipeline is progressing, with an asset for neuropathic pain set to move into clinical trials by mid-2025.
Truist Securities has updated its model for Sangamo following the third-quarter results, leading to the decision to upgrade the stock to Buy and reinstate the price target at $7.00.
This reflects the analyst's confidence in Sangamo's future business prospects and the potential for increased value for shareholders. InvestingPro analysis reveals broader analyst targets ranging from $2 to $10, with multiple additional insights available through the platform's comprehensive research reports covering 1,400+ US stocks.
In other recent news, Sangamo Therapeutics reported significant progress in their gene therapy programs during their Third Quarter 2024 earnings call. The company highlighted advancements in their Fabry disease program and a collaboration with Pfizer (NYSE:PFE) on a hemophilia A treatment. Sangamo is preparing for multiple Biologics License Application (BLA) submissions and received a $50 million milestone payment from Genentech, indicating a robust financial position.
The company is aligning with the FDA on a regulatory pathway for its Fabry disease program, potentially accelerating approval by three years. Sangamo's hemophilia A program with Pfizer is nearing regulatory submission, with the potential for up to $220 million in milestone payments. The first IND application for ST-503 targeting intractable pain has been submitted, with clinical trials expected to commence by mid-2025.
These are recent developments that suggest a busy 2025 for Sangamo with potential BLA submissions for two gene therapy programs. The Phase III AFFINE trial for hemophilia A, developed with Pfizer, has met its primary endpoint, showing significant decreases in annualized bleeding rates. Furthermore, Sangamo plans to submit a 1-year data set for its Fabry disease program by the end of 2024 and a full 2-year data set a year later, potentially leading to a product launch for the Fabry treatment in early 2026.
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