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Sangamo Biosciences (SGMO)
NASDAQ:SGMO
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Sangamo Biosciences (SGMO) AI Stock Analysis

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SGMO

Sangamo Biosciences

(NASDAQ:SGMO)

Rating:46Neutral
Price Target:
$0.50
▼(-13.79% Downside)
Sangamo Biosciences faces significant financial challenges, with declining revenue and persistent negative cash flows being the most impactful factors. While there are promising developments in the clinical pipeline and positive corporate events, the financial instability and reliance on future funding and partnerships pose substantial risks. The technical analysis and valuation offer limited support, resulting in a cautious overall stock score.
Positive Factors
Clinical Trials
The registrational Phase 1/2 STAAR trial in Fabry disease has delivered positive top-line results across renal, cardiac, and quality-of-life endpoints.
Partnerships
The proprietary STAC-BBB capsid has now attracted three blue-chip pharma partnerships, generating $88 million in upfront payments with more than $4.6 billion in potential milestones.
Regulatory Pathway
SGMO announced alignment with FDA on a regulatory pathway to accelerated filing for their AAV-based GTx '920 for Fabry disease.
Negative Factors
Financial Performance
SGMO reported a net loss of ~$20M.
Risks
Risks include clinical development risk tied to isa-vec, commercialization risk, and reimbursement risk among others.

Sangamo Biosciences (SGMO) vs. SPDR S&P 500 ETF (SPY)

Sangamo Biosciences Business Overview & Revenue Model

Company DescriptionSangamo 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 MoneySangamo generates revenue through a combination of collaborations, licensing agreements, and funding from governmental grants and private investments. Key revenue streams include milestone payments and royalties from partnerships with major pharmaceutical companies, such as Pfizer and Biogen, in which Sangamo provides its gene editing technology for the development of novel therapies. Additionally, the company may receive upfront payments in collaboration agreements, as well as potential future earnings tied to the successful commercialization of partnered products. Sangamo also engages in research grants and funding opportunities to support its R&D efforts, further contributing to its overall revenue.

Sangamo Biosciences Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: 20.83%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant advancements in Sangamo's clinical pipeline, particularly in the Fabry disease program with promising top line results and the initiation of a neurology genomic medicine program. However, the company's future heavily relies on securing partnerships and funding, which poses a financial risk. Overall, the sentiment is cautiously optimistic, with more highlights than lowlights.
Q2-2025 Updates
Positive Updates
Positive Top Line Results in Fabry Disease Program
The registrational Phase 1/2 STAAR study for isaralgagene civaparvovec (ST-920) demonstrated a positive mean annualized eGFR slope of almost 2 at 52 weeks across all 32 dose patients, with a positive slope of 1.7 for 19 patients with 2 years of follow-up. This shows a significant improvement compared to the untreated Fabry patient's typical decline of minus 3 to minus 4 in eGFR slope.
Neurology Genomic Medicine Pipeline Initiation
Sangamo became a clinical-stage neurology genomic medicine company by initiating its first clinical site in the Phase 1/2 STAND study for chronic neuropathic pain. The first patient is expected to be dosed in fall 2025, with preliminary proof of efficacy data anticipated by the fourth quarter of 2026.
Progress in Prion Disease Program
A productive meeting with the UK's MHRA was held for the preclinical prion disease program (ST-506), with a planned CTA submission expected as early as mid-2026.
Equity Offering and Cash Runway Extension
Sangamo completed an equity offering expected to fund operations into the fourth quarter of 2025, bridging towards an anticipated Fabry commercialization agreement.
Negative Updates
Dependence on Funding and Partnerships
Sangamo's future plans heavily depend on securing additional capital and establishing a commercialization partner for its Fabry disease program, highlighting financial constraints.
Complexity in Regulatory Pathway
Discussion revealed that the path to approval for the Fabry program involves significant regulatory interactions, including a pre-BLA meeting not yet held, indicating potential challenges in navigating regulatory requirements.
Company Guidance
During the Sangamo Therapeutics Second Quarter 2025 teleconference call, the company provided key guidance on its progress and future plans. The call highlighted positive top-line results from the Phase 1/2 STAAR study for Fabry disease, noting a significant improvement in the mean annualized estimated glomerular filtration rate (eGFR) slope, which is a primary basis for FDA approval under the accelerated approval pathway. Specifically, a mean eGFR slope of almost 2 was observed at 52 weeks across all 32 patients, and 1.7 for 19 patients with two years of follow-up. Additional clinical benefit was reported, including stabilization of cardiac endpoints and improvements in quality of life metrics such as the SF-36 scores. The company announced plans to submit a Biologics License Application (BLA) in early 2026. Sangamo also discussed the initiation of its first clinical site in the Phase 1/2 STAND study for chronic neuropathic pain, with anticipated clinical data by the end of 2026, and plans for a CTA submission for their prion disease program by mid-2026. Financially, Sangamo's cash runway is expected to extend into Q4 2025, with efforts ongoing to secure a Fabry commercialization partner to address long-term funding needs.

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
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue81.71M57.80M176.23M111.30M110.70M118.19M
Gross Profit79.58M57.80M154.04M99.19M101.26M-62.45M
EBITDA-56.86M-89.09M-240.71M-189.17M-173.90M-123.87M
Net Income-63.31M-97.94M-257.83M-192.28M-178.30M-121.12M
Balance Sheet
Total Assets97.56M101.64M165.32M562.51M721.92M938.55M
Cash, Cash Equivalents and Short-Term Investments38.34M41.92M81.00M277.63M376.55M641.42M
Total Debt23.46M30.57M38.10M43.11M48.08M42.09M
Total Liabilities77.96M78.86M82.43M267.55M346.58M441.18M
Stockholders Equity19.60M22.77M82.89M294.96M375.34M497.37M
Cash Flow
Free Cash Flow-36.19M-67.41M-246.00M-243.80M-256.53M155.16M
Operating Cash Flow-35.90M-67.14M-224.84M-223.63M-233.25M169.88M
Investing Cash Flow1.53M37.52M153.53M59.28M248.20M-271.63M
Financing Cash Flow43.54M28.38M14.59M84.66M32.86M153.10M

Sangamo Biosciences Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.58
Price Trends
50DMA
0.52
Positive
100DMA
0.58
Negative
200DMA
1.08
Negative
Market Momentum
MACD
<0.01
Negative
RSI
58.52
Neutral
STOCH
79.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMO, the sentiment is Neutral. The current price of 0.58 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.52, and below the 200-day MA of 1.08, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.52 is Neutral, neither overbought nor oversold. The STOCH value of 79.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGMO.

Sangamo Biosciences Risk Analysis

Sangamo Biosciences disclosed 57 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$331.59M-38.87%
51
Neutral
$7.46B-0.16-46.00%2.25%22.76%-2.28%
46
Neutral
$162.92M-298.41%565.52%79.44%
46
Neutral
$127.12M-97.49%-100.00%51.51%
45
Neutral
$592.45M-35.02%20.37%
38
Underperform
$261.12M-66.75%19.76%
30
Underperform
$162.40M-9999.00%-4.60%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGMO
Sangamo Biosciences
0.58
-0.30
-34.09%
ANNX
Annexon Biosciences
2.44
-3.66
-60.00%
IKT
Inhibikase Therapeutics
1.75
0.48
37.80%
FDMT
4D Molecular Therapeutics
7.26
-7.05
-49.27%
ELTX
Elicio Therapeutics
9.84
5.44
123.64%
TERN
Terns Pharmaceuticals
7.05
-0.20
-2.76%

Sangamo Biosciences Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Sangamo Announces Positive Results for Fabry Disease Therapy
Positive
Jun 24, 2025

On June 24, 2025, Sangamo Therapeutics, Inc. announced positive topline results from its Phase 1/2 STAAR study of isaralgagene civaparvovec, a gene therapy for Fabry disease. The study showed significant improvements in kidney function and quality of life measures, with a favorable safety profile. These results support the potential of isaralgagene civaparvovec as a one-time treatment for Fabry disease, paving the way for a Biologics Licensing Application under the Accelerated Approval pathway by early 2026.

The most recent analyst rating on (SGMO) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Sangamo Biosciences stock, see the SGMO Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Sangamo Biosciences Approves Amendments to Equity Plan
Positive
Jun 16, 2025

On June 12, 2025, Sangamo Therapeutics, Inc. held its annual meeting where stockholders approved significant amendments to the 2018 Equity Incentive Plan. This included increasing the number of shares available for issuance and the number of shares for incentive stock options. The meeting also saw the election of directors, approval of executive compensation, and ratification of Ernst & Young LLP as the company’s independent auditor. These decisions reflect Sangamo’s strategic focus on expanding its equity incentives to attract and retain talent, which could enhance its competitive position in the biotech industry.

The most recent analyst rating on (SGMO) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Sangamo Biosciences stock, see the SGMO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 14, 2025