Sangamo Biosciences (SGMO) AI Stock Analysis

• Market Cap: $158.85M
• Dividend Yield: N/A
• Average Volume (3M): 8.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -67.20%
• EPS Growth: 64.66%
• Country: US
• Employees: 183
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -0.52
• Shares Outstanding: 224,710,020
• 10 Day Avg. Volume: 15,027,039
• 30 Day Avg. Volume: 8,648,409
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.37
• Price to Cash Flow (P/CF): -14.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 614.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Sangamo Biosciences is grappling with substantial financial challenges, including declining revenues, a weakening balance sheet, and persistent negative cash flows, posing significant risks. The bearish technical indicators and high volatility further suggest potential short-term downside. While strategic partnerships offer potential pipeline advancements, the company's current financial instability and unappealing valuation metrics weigh heavily on its overall stock score.

Positive Factors

Financial Performance

The $18M upfront payment from Lilly will help Sangamo support key near-term catalysts including the BLA submission in Fabry disease, which could establish isa-vec (ST-920) as the first gene therapy with a potential accelerated approval pathway in Fabry.

Strategic Partnerships

The new license agreement with Eli Lilly on Sangamo's capsid for the delivery of genomic medicines for diseases of the central nervous system positions Sangamo as an industry leader in neurology-focused gene therapy delivery.

Negative Factors

Financial Concerns

The Fabry partnership remains critical for further extending cash runway.

Program Setbacks

The reason behind PFE's decision to return the Hemophilia A program was not disclosed, but it was clarified that PFE's decision was not based on FDA's feedback.

Sangamo Biosciences Business Overview & Revenue Model

Company Description

Sangamo Therapeutics, Inc., a clinical-stage biotechnology company, focuses on translating science into genomic medicines that transform patients' lives using platform technologies in gene therapy, cell therapy, genome editing, and genome regulation. The company offers zinc finger protein (ZFP), a technology platform for making zinc finger nucleases, which are proteins used in modifying DNA sequences by adding or knocking out specific genes; and ZFP transcription factors proteins used in increasing or decreasing gene expression. It develops SB-525, which is in Phase III AFFINE clinical trial for the treatment of hemophilia A; ST-920, a gene therapy, which is in Phase I/II STAAR clinical trials for the treatment of Fabry disease; and SAR445136, a cell therapy, which is in Phase I/II PRECIZN-1 clinical trials for the treatment of sickle cell disease. The company also develops TX200, chimeric antigen receptor for the treatment of HLA-A2 mismatched kidney transplant rejection; KITE-037, a cell therapy for the treatment of cancer; ST-501 for the treatment of tauopathies; and ST-502 for the treatment of synucleinopathies, including Parkinson's disease and neuromuscular disease. It has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; and California Institute for Regenerative Medicine. The company was formerly known as Sangamo BioSciences, Inc. and changed its name to Sangamo Therapeutics, Inc. in January 2017. Sangamo Therapeutics, Inc. was incorporated in 1995 and is headquartered in Brisbane, California.

How the Company Makes Money

Sangamo Biosciences makes money through a combination of product development partnerships, licensing agreements, and collaboration revenues. The company partners with larger pharmaceutical and biotech firms to develop and commercialize its genomic therapies, receiving upfront payments, research funding, and milestone payments as these partnerships progress. Additionally, Sangamo licenses its proprietary ZFN technology to other companies, generating revenue through licensing fees and royalties on any resulting products. The company's earnings are significantly influenced by the success of its clinical trials, regulatory approvals, and the expansion of its strategic alliances with industry leaders.

Sangamo Biosciences Financial Statement Overview

Summary

Sangamo Biosciences is facing significant financial challenges across all verticals. The company exhibits declining revenue and profitability, a weakening balance sheet with increased leverage, and persistent negative cash flows. These factors collectively indicate financial instability and increased operational risks, which require strategic interventions to stabilize the company's financial health.

Income Statement

Sangamo Biosciences has shown significant volatility in its revenue and profitability metrics. There has been a substantial decline in total revenue from $176.23M in 2023 to $57.8M in 2024, representing a negative revenue growth trend. Gross profit margins have been inconsistent, and the company consistently reports negative EBIT and net income margins, indicating ongoing operational and profitability challenges.

Balance Sheet

The balance sheet reflects a strained financial position with a declining equity base, from $82.89M in 2023 to $22.77M in 2024. The debt-to-equity ratio has worsened due to reduced equity, suggesting increased leverage. The equity ratio declined significantly, indicating reduced shareholder equity relative to total assets, potentially increasing financial risk.

Cash Flow

The cash flow statements highlight persistent negative free cash flow, with a slight improvement from -$246M in 2023 to -$67.4M in 2024. Operating cash flow has remained negative, raising concerns about the company's ability to generate cash from operations. The free cash flow to net income ratio remains unfavorable, reflecting poor cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
57.80M	176.23M	111.30M	110.70M	118.19M
	Gross Profit
57.80M	-45.33M	99.19M	101.26M	-62.45M
	EBIT
-103.97M	-274.00M	-201.28M	-183.34M	-129.55M
	EBITDA
-89.09M	-87.43M	-189.17M	-173.90M	-123.87M
	Net Income Common Stockholders
-97.94M	-257.83M	-192.28M	-178.30M	-121.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.92M	81.00M	277.63M	464.72M	691.95M
	Total Assets
101.64M	165.32M	562.51M	721.92M	938.55M
	Total Debt
30.57M	38.10M	43.11M	48.08M	42.09M
	Net Debt
-11.35M	-7.10M	-57.34M	-130.79M	-89.24M
	Total Liabilities
78.86M	82.43M	267.55M	346.58M	441.18M
	Stockholders Equity
22.77M	82.89M	294.96M	375.34M	497.37M
Cash Flow		Free Cash Flow
-67.41M	-246.00M	-243.80M	-256.53M	155.16M
	Operating Cash Flow
-67.14M	-224.84M	-223.63M	-233.25M	169.88M
	Investing Cash Flow
37.52M	153.53M	59.28M	248.20M	-271.63M
	Financing Cash Flow
28.38M	14.59M	84.66M	32.86M	153.10M

Sangamo Biosciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.7 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.96, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 25.29 is Positive, neither overbought nor oversold. The STOCH value of 9.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGMO.

Sangamo Biosciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
CRSP	46 Neutral	$2.79B	―	-19.20%	―	-89.95%	-123.71%
NTLA	41 Neutral	$677.00M	―	-54.00%	―	59.55%	3.09%
EDIT	39 Underperform	$82.98M	―	-98.10%	―	-58.64%	-40.05%
BEAM	39 Underperform	$1.53B	―	-43.94%	―	-83.18%	-144.95%
BLUE	36 Underperform	$46.70M	―	-295.35%	―	184.12%	31.92%
SGMO	35 Underperform	$158.85M	―	-187.83%	―	-67.20%	64.66%

Sangamo Biosciences Corporate Events

Sangamo Biosciences Faces Pfizer Collaboration Termination

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.