Sangamo Therapeutics Inc. (NASDAQ:SGMO)
Sangamo Therapeutics Inc. (NASDAQ:SGMO) impressive run in the market shows no signs of slowing down as shares ride a wave of continual positive news. The company recently announced receiving the Fast Track Designation from the FDA for SB-5254 as well as a recently signed agreement with Pfizer (NYSE:PFE).
Hemophilia A Gene Therapy Factor
The FDA Fast Track Designation means the agency remains optimistic about the drug’s potential as a novel treatment for unmet medical conditions. Sangamo Therapeutics Inc. (NASDAQ:SGMO) will now be able to communicate with the regulator more frequently and have issues addressed more quickly, expediting the regulatory pathway.
“Our team continues to make significant operational progress across all four lead clinical programs. Three Phase 1/2 in vivo genome editing clinical trials are now screening subjects, and the fourth trial evaluating SB-525, a cDNA gene therapy approach for Hemophilia A, will open later this quarter. We are initiating multiple sites for each program over the next few months to ensure we can accrue patients rapidly into these studies,” said Dr. Sandy Macrae, CEO.
Sangamo Therapeutics Inc. (NASDAQ:SGMO) cDNA has already received Orphan Drug designation from the FDA, the regulator having also cleared it as an Investigational New Drug application. A partnership with Pfizer (NYSE:PFE) means the company will now be able to accelerate the development of the drug given the financial resources that comes with the partnership.
Pfizer Inc. (NYSE:PFE) has already released $70 million in upfront payment. Given that the giant drug maker will take up development after Phase 1/2 means Sangamo Therapeutics will not incur future costs but will benefit from potential revenues.
Q1 Financial Results
The biopharmaceutical company recently reported first-quarter earnings that beat Wall Street estimates. For the first three months of the year, the company says it generated a net loss of (-$16.6) million or (-$0.23) a share. Analysts were expecting a net loss of (-$0.26) a share. Revenues in the quarter totaled $3.4 million compared to revenues of $3.9 million reported last year same period.
Revenues in the quarter included $3.3 million in collaboration agreements with $0.1 million coming from research grants. Sangamo Therapeutics Inc. (NASDAQ:SGMO) exited the first quarter with cash and cash equivalent of $132.7 million.
Sangamo Therapeutics Inc. (NASDAQ:SGMO) stock was down by 7.05% in Friday’s trading session ending the week at $7.25 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.