Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, H.C. Wainwright analyst Patrick R. Trucchio reaffirmed a Buy rating with a $10.00 price target on Sangamo BioSciences (NASDAQ:SGMO), representing significant upside from the current price of $0.71. According to InvestingPro data, analyst targets range from $2 to $10, with the stock showing a significant 24% return over the past week. Trucchio's endorsement comes as Sangamo enters a critical year, which could significantly enhance the company's value. The analyst's optimism is partly based on Sangamo's recent licensing deal with Eli Lilly (NYSE:LLY) concerning the STAC-BBB capsid technology, aimed at treating central nervous system diseases.
Trucchio believes that this agreement places Sangamo at the forefront of gene therapy delivery in neurology. The $18 million upfront payment from Lilly is expected to support Sangamo's upcoming milestones, which is crucial given that InvestingPro analysis indicates the company is quickly burning through cash, with negative EBITDA of $93.24 million in the last twelve months. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. These include the Biologics License Application (BLA) submission for Fabry disease, anticipated in the second half of 2025. If approved, Sangamo's isa-vec (ST-920) could become the first gene therapy for Fabry disease with a potential for accelerated approval.
Sangamo's strategic moves, particularly the collaboration with Eli Lilly, are seen as a step forward in consolidating its position within the gene therapy market. The financial boost from the deal is considered pivotal for Sangamo's progress in the near term. The BLA submission for Fabry disease represents a significant event for the company, with the potential to set a new standard for gene therapy treatments in the industry.
The analyst's reiterated price target and rating reflect confidence in Sangamo's pipeline and strategic partnerships, despite the company's revenue declining by 67.2% in the last twelve months. The company's focus on delivering genomic medicines for central nervous system diseases is recognized as a key factor in its potential industry leadership, though InvestingPro data shows it currently operates with moderate debt levels and an overall Financial Health score of "FAIR."
In summary, Sangamo BioSciences is positioned for a transformative year, with the support of Eli Lilly's partnership and the anticipated regulatory submission for its Fabry disease therapy. H.C. Wainwright's reiteration of a Buy rating and a $10.00 price target underscores the firm's belief in Sangamo's prospects for growth and innovation in the gene therapy space.
In other recent news, Sangamo Therapeutics reported its earnings for Q4 2024, revealing an earnings per share (EPS) of -0.11, which slightly missed the forecast of -0.10. Revenue was reported at $7.55 million, falling short of the expected $10.32 million. Despite the earnings miss, Sangamo has made significant strides, notably entering a licensing agreement with Eli Lilly for its STAC-BBB neurotropic adeno-associated virus capsid. This deal includes an $18 million upfront payment and could potentially yield up to $1.4 billion in additional fees and milestone payments for five potential disease targets. Truist Securities maintained a Buy rating on Sangamo, highlighting ongoing developments in treatments for chronic neuropathic pain and prion disease. Jefferies also kept a Buy rating but adjusted its price target to $2.00 from $3.00, reflecting updated financial assessments. Sangamo's strategic focus includes extending its cash runway and advancing its Fabry disease program, with plans to file for accelerated approval in the second half of 2025. The company is also in advanced discussions for a third STAC-BBB partnership, aiming to bolster its financial position and support ongoing research efforts.
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