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Sangamo Biosciences (SGMO)
:SGMO
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Sangamo Biosciences
(NASDAQ:SGMO)42Neutral
Positive Factors
Financing and Partnerships
SGMO has buffered cash risk with capsid deals with Roche ($50M) and Astellas ($20M), and sees potential for a third deal too.
Potential Collaborations
SGMO continues to advance discussions regarding a potential collaboration agreement around the study data.
Negative Factors
Program Termination
PFE's decision increases cash overhang risk for SGMO, because the company will no longer be eligible for ~$70M milestone payment for BLA filing.
Sangamo Biosciences (SGMO) vs. S&P 500 (SPY)
Market Cap
$179.37M
Dividend YieldN/A
Average Volume (3M)3.76M
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth-74.04%
EPS Growth48.16%
CountryUS
Employees405
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.74
Shares Outstanding208,646,870
10 Day Avg. Volume3,791,503
30 Day Avg. Volume3,763,469
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.67
Price to Cash Flow (P/CF)4.10
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.80Price Target Upside574.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Sangamo Biosciences Business Overview & Revenue Model
Company DescriptionSangamo Biosciences, now known as Sangamo Therapeutics, Inc., is a biotechnology company focused on developing genomic medicines leveraging its proprietary technology platforms in gene therapy, cell therapy, and genome editing. The company operates primarily in the healthcare and life sciences sectors, working on creating transformative therapies for patients with serious genetic diseases and other unmet medical needs. Sangamo's core products and services revolve around the development of therapeutics for conditions like hemophilia, sickle cell disease, and lysosomal storage disorders.
How the Company Makes MoneySangamo Therapeutics generates revenue through a combination of collaboration agreements, licensing deals, and grant funding. The company partners with leading pharmaceutical and biotechnology companies to co-develop and commercialize its therapeutic candidates, receiving upfront payments, milestone payments, and royalties on sales. Key partnerships include collaborations with Biogen, Pfizer, and Sanofi, among others, which significantly contribute to its earnings. Additionally, Sangamo may earn revenue from government grants and research funding related to its innovative therapeutic programs.
Sangamo Biosciences Financial Statement Overview
Summary
Sangamo Biosciences faces considerable financial challenges, with declining revenues and sustained losses impacting profitability. While there are signs of improving cost management, high debt levels and negative cash flow raise concerns about liquidity and financial stability. The biotechnology sector's inherent volatility adds to the risk profile, necessitating cautious monitoring of financial health and performance improvements.Income Statement
Sangamo Biosciences shows significant challenges in its income statement with declining revenues from $176.23M in 2023 to $52.29M TTM. The gross profit margin shifted from negative to positive in the TTM, standing at 84.56%, indicating improved cost management. However, net income remains in the negative, reflecting persistent losses, and the net profit margin is also negative, suggesting profitability issues. Despite some improvement, the overall trajectory remains concerning.35
Negative
Balance Sheet
The company maintains a relatively stable balance sheet with a debt-to-equity ratio of 0.71 in the TTM, indicating moderate leverage. The equity ratio decreased to 35.18% from previous years, showing reduced financial stability. However, the return on equity remains negative due to ongoing losses. The high debt levels and declining equity position pose risks to financial health.40
Negative
Cash Flow
Cash flow statements highlight negative operating cash flow of -$114.33M in TTM, with free cash flow also negative. There is a concerning free cash flow growth rate, indicating increasing cash burn. The operating cash flow to net income ratio is slightly below 1, showing a lack of efficiency in turning profits into cash. The cash flow situation suggests potential liquidity issues.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 114.16M | 176.23M | 111.30M | 110.70M | 118.19M | 102.43M | Gross Profit |
| 43.18M | -45.33M | 99.19M | 101.26M | -62.45M | -43.49M | EBIT |
| -179.33M | -274.00M | -201.28M | -183.34M | -129.55M | -105.18M | EBITDA |
| -168.29M | -87.43M | -189.17M | -173.90M | -123.87M | -101.25M | Net Income Common Stockholders |
| -172.33M | -257.83M | -192.28M | -178.30M | -121.12M | -75.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 81.00M | 81.00M | 277.63M | 464.72M | 691.95M | 384.99M | Total Assets |
| 165.32M | 165.32M | 562.51M | 721.92M | 938.55M | 637.52M | Total Debt |
| 38.10M | 38.10M | 43.11M | 48.08M | 42.09M | 44.41M | Net Debt |
| -7.10M | -7.10M | -57.34M | -130.79M | -89.24M | -36.02M | Total Liabilities |
| 82.43M | 82.43M | 267.55M | 346.58M | 441.18M | 204.78M | Stockholders Equity |
| 82.89M | 82.89M | 294.96M | 375.34M | 497.37M | 432.74M |
| Cash Flow | Free Cash Flow | ||||
| -241.44M | -246.00M | -243.80M | -256.53M | 155.16M | -165.08M | Operating Cash Flow |
| -225.09M | -224.84M | -223.63M | -233.25M | 169.88M | -144.40M | Investing Cash Flow |
| 143.75M | 153.53M | 59.28M | 248.20M | -271.63M | -59.80M | Financing Cash Flow |
| 28.91M | 14.59M | 84.66M | 32.86M | 153.10M | 142.03M |
Sangamo Biosciences Technical Analysis
Negative
0.86
Price Trends
1.34
Negative
1.59
Negative
1.14
Negative
Market Momentum
-0.11
Positive
30.95
Neutral
20.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMO, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.34, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 30.95 is Neutral, neither overbought nor oversold. The STOCH value of 20.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGMO.
Sangamo Biosciences Risk Analysis
Sangamo Biosciences disclosed 60 risk factors in its most recent earnings report. Sangamo Biosciences reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sangamo Biosciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
50 Neutral | $146.11M | ― | -119.89% | ― | 150.95% | 5.48% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $3.73B | ― | -18.96% | ― | -89.95% | -123.71% | |
45 Neutral | $2.21B | ― | -51.36% | ― | -83.18% | -144.95% | |
42 Neutral | $179.37M | ― | -344.56% | ― | -74.04% | 48.16% | |
42 Neutral | $37.21M | ― | 5193.90% | ― | 144.50% | -141.91% | |
39 Underperform | $941.49M | ― | -59.52% | ― | 59.55% | 3.09% |
* Healthcare Sector Average
Performance Comparison
SGMO
Sangamo Biosciences
0.86
-0.17
-16.50%
BLUE
Bluebird Bio
3.82
-23.98
-86.26%
EDIT
Editas Medicine
1.76
-7.38
-80.74%
NTLA
Intellia Therapeutics
9.10
-21.15
-69.92%
CRSP
Crispr Therapeutics AG
43.45
-37.54
-46.35%
BEAM
Beam Therapeutics
26.44
-12.07
-31.34%
Sangamo Biosciences Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -25.22% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call was positive, highlighting significant regulatory and clinical advancements, as well as strategic partnerships, despite the financial constraints posed by a limited cash runway.Highlights
Regulatory Progress for Fabry Disease Program
Sangamo has aligned with the FDA on a clear regulatory pathway to accelerated approval for their Fabry disease program, reducing the time to potential approval by 3 years and avoiding an additional costly registrational study.
Pfizer Hemophilia A Program Milestone
Pfizer's Phase III AFFINE trial for hemophilia A met its primary endpoint with a significant decrease in total annualized bleeding rate, unlocking potential for $220 million in regulatory and commercial milestones for Sangamo.
Genentech Collaboration and Financial Boost
Sangamo signed a neurology epigenetic regulation and capsid delivery license agreement with Genentech, receiving $50 million in upfront license fees and milestone payments.
First IND Submission for Neurology Indication
Sangamo submitted its first IND application for a neurology indication, with plans for the clinical trial to start in the middle of 2025.
Lowlights
Limited Cash Runway
Sangamo's cash runway is only sufficient to fund operations into the first quarter of 2025, necessitating additional funding from partnerships or milestone payments.
Company Guidance
During the Sangamo Therapeutics Q3 2024 earnings call, the executive team provided guidance on several key metrics. They highlighted significant regulatory advancements in their Fabry disease program, noting a clear FDA pathway to accelerated approval, which reduces the time to potential approval by three years. They anticipate a Biologics License Application (BLA) submission in the second half of 2025. Additionally, the company reported receiving $50 million in upfront license fees and milestone payments from a new agreement with Genentech, extending their cash runway into Q1 2025. Sangamo also mentioned the potential to earn up to $220 million in milestone payments from Pfizer for their hemophilia A program over the next two years. The cash runway is projected to last into the first quarter of 2025, absent further funding from collaborations or milestone payments.Sangamo Biosciences Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Sangamo Biosciences Faces Pfizer Collaboration Termination
Negative
Dec 30, 2024
Pfizer has terminated its collaboration with Sangamo Therapeutics regarding the development and commercialization of the gene therapy giroctocogene fitelparvovec for hemophilia A. As a result, the collaboration agreement will end on April 21, 2025, halting any royalties and milestone payments from Pfizer to Sangamo. Sangamo will regain an exclusive, sublicensable license from Pfizer to continue the product’s development and will seek a new partner for regulatory approval and commercialization.
Legal ProceedingsBusiness Operations and Strategy
Sangamo Biosciences’ Legal Victory and Hemophilia Trial Success
Positive
Dec 10, 2024
Sangamo Therapeutics faced legal challenges over a stock increase amendment, but the Delaware Court of Chancery validated the voting process, clearing uncertainties. Meanwhile, in collaboration with Pfizer, Sangamo presented promising results from the Phase 3 AFFINE trial for a gene therapy targeting hemophilia A, showing significant reductions in bleeding rates. These developments are pivotal for investors tracking Sangamo’s strategic moves and the broader gene therapy market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.