Sangamo Therapeutics: A Gene-Therapy Journey into the Future

Ticker: SGMO | Date: February 28, 2020

Fourth Quarter and Full Year 2019 Results

On February 28, Sangamo Therapeutics, Inc. (NASDAQ: SGMO) reported its fourth quarter and full year 2019 financial results, revealing a pivotal moment in the company's evolution. With a focused shift toward gene therapies, the company is poised to surprise investors with its ambitious revenue forecast and innovative projects.

Key Highlights from the Report

The earnings report showcased several significant developments that could impact the company?s future earnings per share (EPS). CEO Sandy Macrae emphasized the transition to a Phase III company, following the transfer of the IND for SB-525, a hemophilia A gene therapy, to Pfizer. This collaboration is expected to commence a registrational study this year, potentially enhancing the EPS consensus around the company.

Sangamo also announced a global collaboration agreement with Biogen to develop gene regulation therapies targeting Alzheimer?s and Parkinson?s diseases. The exclusivity of this partnership, including rights to nominate additional undisclosed targets, could lead to an earnings surprise as the market digests the implications of this strategic alliance.

Financial Metrics and Future Implications

While specific EPS figures were not disclosed in the report, the completion of the transfer of the IND for SB-525 has triggered a $25 million milestone payment from Pfizer. This influx could provide a short-term boost to liquidity, allowing Sangamo to invest further in its pipeline.

Additionally, the company received Orphan Drug Designation for ST-920, a gene therapy candidate for Fabry disease, highlighting its commitment to addressing rare diseases. With six U.S. sites actively screening subjects for the Phase 1/2 STAAR study, investors may want to keep an eye on enrollment rates as they could directly influence future EPS figures.

What Lies Ahead for Sangamo and Its Peers

The data presented at the recent American Society of Hematology meeting showcased the efficacy of SB-525, indicating a well-tolerated treatment that sustained increased Factor VIII levels. These positive outcomes may position Sangamo favorably against its peers in the gene therapy space, as the market continues to weigh the potential of these innovative treatments in a sector ripe for disruption.

Moreover, Sangamo's collaborative efforts with Sanofi and other entities to expand its clinical reach in gene-editing therapies for conditions like sickle cell disease could further enhance its revenue potential. As the company navigates this promising landscape, the market will be watching closely for any adjustments to the EPS consensus as these clinical trials progress.