Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 7 Mar, 25 | SGMO | Buy | USD 1.0 | USD 1.07 | USD 1.15 | 10 days | 15.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Sangamo Therapeutics, Inc., a clinical-stage genomic medicine company, focuses on translating science into medicines that transform the lives of patients and families afflicted with serious diseases in the United States. The company's clinical-stage product candidates are ST-920, a gene therapy product candidate, which is in Phase 1/2 clinical study for the treatment of Fabry disease; TX200, a chimeric antigen receptor engineered regulatory T cell (CAR-Treg) therapy product candidate that is in Phase 1/2 clinical study for the prevention of immune-mediated rejection in HLA-A2 mismatched kidney transplantation; SB-525, a gene therapy product candidate, which is in Phase 3 clinical trial for the treatment of moderately severe to severe hemophilia A; BIVV003, a zinc finger nuclease gene-edited cell therapy product candidate that is in Phase 1/2 PRECIZN-1 clinical study for the treatment of sickle cell disease. Its preclinical development products focus on CAR-Treg cell therapies for autoimmune disorders and genome engineering for neurological diseases. Sangamo Therapeutics, Inc. has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; and California Institute for Regenerative Medicine. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. Sangamo Therapeutics, Inc. was incorporated in 1995 and is headquartered in Richmond, California.
Cost Reduction – Total GAAP operating expenses decreased to $38.8 million in Q3 2024 from $115.8 million in Q3 2023, reflecting a 66% reduction, largely due to restructuring efforts and prioritization of key programs
Revenue Growth – Sangamo reported $49.4 million in revenue for Q3 2024, a 425% increase compared to $9.4 million in Q3 2023, primarily driven by the Genentech collaboration
Limited Operational Runway – The company projects that existing cash resources, including a $10 million milestone payment from Genentech, will only sustain operations until Q1 2025, highlighting an urgent need for additional funding or partnerships
Cash Position Decline – Cash and cash equivalents fell from $81.0 million as of December 31, 2023, to $39.2 million as of September 30, 2024, indicating a 52% decrease, raising concerns about short-term liquidity
SGMO faces significant investment risks due to its declining cash reserves, reliance on milestone payments and partnerships for funding, potential regulatory delays in its gene therapy programs, and the uncertainty of commercial success for its investigational treatments.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 1.0 | 0.89 | 1.07 | 1.15 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Strategic Corporate Developments: In August 2024, Sangamo announced a significant global epigenetic regulation and capsid delivery license agreement with Genentech, aimed at developing novel genomic medicines for neurodegenerative diseases. As part of this collaboration, Sangamo received an upfront payment of $50 million, with the potential to earn up to $1.9 billion in development and commercial milestone payments across multiple products. Additionally, the agreement includes tiered royalties on net sales, subject to specified reductions, positioning the company for long-term financial growth.
Advancements in Fabry Disease Gene Therapy: Sangamo achieved a major regulatory milestone in October 2024 when the FDA provided a clear pathway to Accelerated Approval for isaralgagene civaparvovec (ST-920), its investigational gene therapy for Fabry disease. Data from the ongoing Phase 1/2 STAAR study demonstrated a statistically significant improvement in kidney function, leading the FDA to recognize estimated glomerular filtration rate (eGFR) slope as an intermediate clinical endpoint for approval. This accelerated pathway enables Sangamo to potentially submit a Biologics License Application (BLA) in the second half of 2025, three years ahead of initial estimates, eliminating the need for an additional registrational study.
Progress in Hemophilia A Collaboration with Pfizer: Sangamo's co-developed gene therapy for hemophilia A, giroctocogene fitelparvovec, in collaboration with Pfizer, achieved key milestones in the Phase 3 AFFINE trial. Data presented at the 66th ASH Annual Meeting in December 2024 confirmed that the therapy met its primary endpoint, demonstrating a significant reduction in annualized bleeding rates compared to standard Factor VIII replacement therapy. Secondary endpoints were also met, showing sustained FVIII activity levels over two years post-infusion. Sangamo remains eligible for up to $220 million in milestone payments from Pfizer, along with royalty revenues ranging between 14% and 20% upon successful commercialization.
Neurology Pipeline and Emerging Therapeutic Programs: Sangamo continued advancing its neurology pipeline, with notable progress in chronic neuropathic pain and prion disease programs. An Investigational New Drug (IND) application was submitted to the FDA for ST-503, an epigenetic regulator for treating intractable pain due to small fiber neuropathy (iSFN), with a Phase 1/2 study expected to commence in mid-2025. Additionally, preclinical studies on prion disease demonstrated promising results, including significant reductions in prion gene expression and toxic aggregate formation. Sangamo anticipates submitting a Clinical Trial Authorization (CTA) for its prion disease therapy in Q4 2025, leveraging its novel STAC-BBB delivery platform for blood-brain barrier penetration.
Financial Performance and Cost Optimization: Sangamo reported a consolidated net income of $10.7 million for Q3 2024, a significant turnaround from the $104.2 million net loss in Q3 2023. The company’s revenue surged to $49.4 million, primarily driven by the Genentech collaboration, compared to $9.4 million in the same period of 2023. Total operating expenses on a GAAP basis decreased to $38.8 million in Q3 2024 from $115.8 million in Q3 2023, reflecting restructuring efforts, reductions in R&D expenditures, and workforce optimization. Non-GAAP operating expenses also declined, further strengthening the company’s financial position.
Liquidity and Financial Outlook: As of September 30, 2024, Sangamo’s cash and cash equivalents stood at $39.2 million, down from $81.0 million at the end of 2023. The company expects that its available cash, along with a $10 million milestone payment from Genentech, will fund operations into Q1 2025. For the full year 2024, Sangamo projects GAAP total operating expenses between $150 million and $170 million, with non-GAAP expenses ranging from $125 million to $145 million, excluding stock-based compensation, impairment charges, and depreciation. These financial projections reflect Sangamo’s ongoing efforts to streamline operations while advancing its clinical programs and business partnerships.
Technical Commentary:
SGMO's stock price has found support at critical levels and has started to increase in the previous trading day, signaling potential for near-term upward momentum. This development suggests that the stock may sustain its upward trajectory. On the daily chart, the leading indicator, the 14-period Relative Strength Index (RSI), is currently situated below the midpoint but may soon signal an upward movement.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Sangamo Therapeutics Inc (NASDAQ: SGMO) at the closing market price of USD 1.00, as on March 06, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SGMO Sangamo Therapeutics Inc |
-0.0757 11.54% | 0.58 | - | - | 4.51 | 5.81 | 4.13 | -0.9957 |
| NVO Novo Nordisk A/S |
-0.8143 1.17% | 68.63 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
0.0025 0.0036% | 68.96 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
0.03 0.0062% | 484.85 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
-7.26 1.14% | 626.97 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 06,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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