On Tuesday, Jefferies analysts revised their price target on Sangamo BioSciences (NASDAQ:SGMO) shares, lowering it to $1.50 from the previous $2.00, while maintaining a Buy rating on the stock. Currently trading at $0.75, the stock has shown resilience with a 22% gain over the past week, though InvestingPro analysis indicates the company is currently trading near its Fair Value. The adjustment follows Sangamo’s announcement of securing $23 million in financing at the market close, which is aimed at extending the company’s financial runway into the third quarter. This capital infusion is intended to provide the biopharmaceutical company with additional time to finalize a deal for its Fabry disease program.
The company has been actively involved in discussions with multiple parties regarding its Fabry disease treatment, with a focus on demonstrating and analyzing top-line eGFR data expected to be released in June 2025. Jefferies analysts believe that the finalized data could play a crucial role in increasing the likelihood of securing a deal.
Despite acknowledging the risks associated with Sangamo’s current position, the analysts found the sustained interest and engagement from multiple parties to be a positive sign. The financing is seen as a strategic move to bolster the company’s negotiating position as it works towards a partnership or agreement related to its Fabry disease program.
In other recent news, Sangamo Therapeutics reported its Q1 2025 earnings, highlighting its collaboration with Eli Lilly (NYSE:LLY), which could potentially bring in up to $1.4 billion in milestone payments. The company received an $18 million upfront license fee from Eli Lilly, marking a significant step in its neurology pipeline advancements. Despite these developments, Sangamo’s stock faced a sharp decline of over 42% in the aftermarket session, which may reflect investor concerns over the absence of immediate financial results or guidance revisions. The company achieved a 50% reduction in non-GAAP operating expenses year-on-year in 2024, aiming to extend its cash runway to late Q3 2025. Sangamo plans to submit a Biologics License Application (BLA) for its Fabry disease treatment in Q1 2026, with a potential commercial launch in H2 2026. The collaboration with Eli Lilly and the focus on securing a commercialization partner for Fabry disease remain key priorities for Sangamo. Analysts from Jefferies and Truist have shown interest in the company’s ongoing discussions with potential partners and regulatory interactions. The company’s financial strategy includes a recent equity offering to support its immediate cash needs and advance its neurology-focused mission.
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