Sangamo Biosciences, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Patrick Trucchio from H.C. Wainwright reiterated a Buy rating on the stock and has a $10.00 price target.
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Patrick Trucchio’s rating is based on the FDA’s acceptance of Sangamo Biosciences’ request for a rolling Biologics License Application (BLA) submission for their gene therapy ST-920, which is aimed at treating Fabry disease. This acceptance marks a significant regulatory milestone, indicating progress towards a full BLA filing by 2026 and reinforcing the potential for Accelerated Approval. The FDA’s agreement to use the estimated glomerular filtration rate (eGFR) slope as the primary endpoint further supports the therapy’s approval pathway.
Additionally, the promising results from the Phase 1/2 STAAR trial, showing renal improvement and stable cardiac function, contribute to the confidence in the therapy’s efficacy and safety. The combination of Orphan Drug, Fast Track, and RMAT designations highlights regulatory confidence and suggests a streamlined review process. Trucchio’s valuation of Sangamo is supported by a discounted cash flow analysis and considers potential milestone payments and revenues, leading to a price target of $10. Despite the risks associated with clinical development and commercialization, the probability of success is estimated at 85%, justifying the Buy rating.