One & One Green Technologies stock soars 100% after IPO debut
Tuesday, Wells Fargo (NYSE:WFC) analyst revised the price target for Sangamo BioSciences (NASDAQ:SGMO) to $2.00 from the previous $3.00 while maintaining an Equal Weight rating on the stock. The company's shares currently trade at $2.34, with a market capitalization of $488 million.
According to InvestingPro data, the stock has shown remarkable momentum with a 330% return year-to-date, despite operational challenges. The adjustment follows the recent announcement that Pfizer (NYSE:NYSE:PFE) will terminate its global collaboration and license agreement with Sangamo for the development of giroctocogene fitelparvovec, a gene therapy for hemophilia A.
Sangamo BioSciences disclosed on Monday that Pfizer's decision will result in the discontinuation of the Biologics License Application (BLA) and Marketing Authorization Application (MAA) submissions for the treatment. The termination of the agreement is set for April 21, 2025, at which point Pfizer will hand over the program back to Sangamo.
This development comes despite Pfizer reporting positive results from the phase 3 AFFINE trial in July 2024 and presenting detailed findings earlier this month at the American Society of Hematology (ASH) meeting.
The price target reduction by Wells Fargo reflects updated model assumptions for Sangamo's Hemophilia A program, including milestones, approval probabilities, and launch timing. The firm's 2025 earnings per share estimate for Sangamo has been adjusted to $0.25 from the previous $0.55. InvestingPro analysis reveals concerning fundamentals, including weak gross profit margins and rapid cash burn, with the company remaining unprofitable over the last twelve months.
In response to the setback, Sangamo has indicated it will seek a new partner for its Fabry gene therapy program to help extend its cash runway. The company's current cash reserves are expected to fund operations into the first quarter of 2025, with the next earnings report scheduled for February 19, 2025. For deeper insights into Sangamo's financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, featuring detailed analysis of the company's fundamentals and future potential.
Additionally, Sangamo highlighted ongoing partnerships with Genentech and Astellas, as well as advanced business development talks regarding its Fabry program, which could support the advancement of its neurology pipeline, contingent on securing additional funding.
In other recent news, Sangamo Therapeutics has faced a significant change in its partnership with Pfizer. The pharmaceutical giant has chosen to terminate its global collaboration with Sangamo, leading to a 27% drop in Sangamo's shares. Despite this setback, Sangamo has quickly begun exploring other potential partnerships to continue advancing its program.
Pfizer's decision was primarily due to its choice not to proceed with the Biologics License Application and Marketing Authorization Application submissions for giroctocogene fitelparvovec, a gene therapy candidate for hemophilia A.
Following Pfizer's move, Sangamo reclaimed the development and commercialization rights for giroctocogene fitelparvovec, despite the therapy showing positive Phase 3 trial results. 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.
Sangamo also announced a $20 million licensing agreement with Astellas Pharma, granting Astellas an exclusive worldwide license to Sangamo's STAC-BBB capsid technology for gene therapy applications in neurological diseases. This deal could potentially bring Sangamo up to $1.3 billion in milestone payments and tiered royalties on net sales of products developed through the collaboration.
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