Investors are buying up shares of Sangamo Biosciences, Inc. (NASDAQ:SGMO) today after the company announced that they have received clearance from the U.S. FDA for their Investigational New Drug (IND) application for their hemophilia B treatment currently referred to as SB-FIX.
The clinical stage biopharmaceutical company has been involved in research for methods of commercializing Zinc finger nucleases that can change a cell’s DNA. This latest tidbit of news is certainly positive for the company in their endeavors of finding a cure for hemophilia B (Christmas disease), a blood clotting ailment caused by a mutation of the factor IX gene.
Typical treatment of the disorder requires intravenous infusion of factor IX, but SGMO’s latest treatment may make things a bit less complicated.
“A single treatment with SB-FIX has the potential to provide life-long, stable expression of clinically relevant levels of Factor IX (FIX) protein and eliminate patients’ need for chronic transfusions of recombinant clotting factor,” said Geoff Nichol, M.B., Ch.B., Sangamo’s executive vice president of research and development. “Our proprietary IVPRP genome editing approach allows us to precisely target and edit the albumin “safe harbor” locus in the DNA of liver cells which we expect to result in therapeutic levels of clotting factor that are maintained for the life of the patient. In contrast, conventional AAV gene therapy approaches, which are non-integrating, have the potential to “wash out” over time as the patient’s liver cells divide and turn over. Ultimately, our target population for this approach will be young children with hemophilia B who will benefit most from a permanent treatment.”
The stock is up 10.33% or $0.86 after the positive news, hitting $9.14 per share. About 1.70M shares traded hands or 94.89% up from the average. SGMO has declined 36.31% since April 28, 2015 and is downtrending. It has underperformed by 35.42% the S&P500.
Out of 5 analysts covering Sangamo Biosciences (NASDAQ:SGMO), 4 rate it “Buy”, 1 “Sell”, while 0 “Hold”. This means 80% are positive. $22 is the highest target while $12 is the lowest. The $17 average target is 86.00% above today’s ($9.14) stock price. Sangamo Biosciences was the topic in 7 analyst reports since August 8, 2015 according to StockzIntelligence Inc. Jefferies reinitiated the stock on October 23 with “Buy” rating. JP Morgan maintained it with “Overweight” rating and $22 target price in an August 8 report. Cowen & Co maintained the shares of SGMO in a report on September 4 with “Buy” rating. Finally, Wedbush maintained the stock with “Buy” rating in a September 2 report.
The institutional sentiment decreased to 0.97 in Q2 2015. Its down 0.39, from 1.36 in 2015Q1. The ratio dived, as 32 funds sold all Sangamo Biosciences, Inc. shares owned while 46 reduced positions. 26 funds bought stakes while 50 increased positions. They now own 50.47 million shares or 3.34% less from 52.21 million shares in 2015Q1.
Fic Capital Inc holds 4.85% of its portfolio in Sangamo Biosciences, Inc. for 783,479 shares. Ra Capital Management Llc owns 1.22 million shares or 1.36% of their US portfolio. Moreover, Princeton Capital Management Inc has 0.67% invested in the company for 114,120 shares. The Massachusetts-based Cormorant Asset Management Llc has invested 0.53% in the stock. Perceptive Advisors Llc, a New York-based fund reported 800,000 shares.
Since March 6, 2015, the stock had 0 insider buys, and 5 selling transactions for $988,800 net activity. Lanphier Edward O Ii sold 25,000 shares worth $260,770. Wolff Henry Ward sold 12,000 shares worth $120,000. Ando Dale G sold 15,000 shares worth $184,394. Gregory Philip D sold 15,000 shares worth $185,816. The insider Ringo William R sold 2,200 shares worth $27,364.
Sangamo Biosciences Inc. is a clinical-stage biopharmaceutical company. The company has a market cap of $617.47 million. The Firm is focused on the research development and commercialization of engineered DNA-binding proteins as therapeutic products. It currently has negative earnings. The main focus for the Company is the development of novel human therapeutics and it is building a pipeline of ZFP Therapeutics.