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Sangamo Biosciences (SGMO)
NASDAQ:SGMO

Sangamo Biosciences (SGMO) AI Stock Analysis

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Sangamo Biosciences

(NASDAQ:SGMO)

Rating:47Neutral
Price Target:
$0.50
▼(-5.66%Downside)
Sangamo Biosciences faces critical financial challenges and bearish technical indicators that weigh heavily on its stock score. Positive developments in collaborations and clinical programs offer potential, yet immediate financial risks and compliance issues with Nasdaq remain key concerns.
Positive Factors
Clinical Trials
The updated 1-year eGFR slope data with all patients continues to look encouraging, maintaining superiority over published data for other drugs.
Financial Strategy
Recent financings have extended the company’s runway into late 3Q25, aligning Sangamo’s pipeline, platform, and execution to unlock meaningful upside from current levels.
Partnerships
Sangamo's STAC-BBB platform has secured three high-value partnerships with Genentech, Astellas, and Eli Lilly, with further collaborations anticipated.
Negative Factors
Development Risks
Risks include clinical development risk tied to isa-vec, commercialization risk, and reimbursement risk among others.
Regulatory Challenges
The upcoming pivotal data readout from the STAAR trial in Fabry disease could be a major de-risking event, potentially leading to first-in-class gene therapy approval.

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 Therapeutics generates revenue through a combination of collaborative partnerships, licensing agreements, and government grants. The company forms strategic alliances with major pharmaceutical firms, such as Pfizer and Biogen, to co-develop and commercialize its genomic therapies, often receiving upfront payments, milestones, and royalties as part of these collaborations. Additionally, Sangamo licenses its proprietary technology to other biotech firms, thereby earning licensing fees. Government and institutional grants contribute to funding specific research projects, enhancing the company's ability to advance its therapeutic programs. These diverse streams of income collectively support Sangamo's business operations and ongoing research initiatives.

Sangamo Biosciences Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: -29.33%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in Sangamo's collaborations and clinical advancements, particularly with the Fabry program, alongside recognition at a major scientific meeting. However, it also underscored immediate financial challenges and dependence on securing a partnership for long-term sustainability.
Q1-2025 Updates
Positive Updates
Collaboration with Eli Lilly for STAC-BBB
Sangamo Therapeutics signed a worldwide exclusive license agreement with Eli Lilly for the STAC-BBB capsid, potentially worth up to $1.4 billion in milestone payments and royalties. This is the third such agreement following partnerships with Genentech and Astellas.
Advancement in Fabry Program
Sangamo announced all patients in the Phase 1/2 STAAR study completed at least 52 weeks of follow-up, an FDA requirement for accelerated approval. Preliminary analysis showed positive mean eGFR slopes, and a pivotal data readout is expected by the end of the quarter.
Equity Financing to Extend Cash Runway
Sangamo announced an equity offering to extend their cash runway, which is expected to provide the necessary bridge to secure a commercial partnership for their Fabry program.
Recognition at ASGCT Annual Meeting
Sangamo was selected to present during the Presidential Symposium at the ASGCT Annual Meeting, highlighting their advancements in epigenetic regulation and capsid delivery technology.
Negative Updates
Short-Term Financial Challenges
Sangamo announced that the equity financing will extend their runway only until late third quarter of this year, indicating immediate financial challenges.
Dependence on Partnership for Funding
Sangamo's financial strategy heavily relies on securing a commercial partnership for the Fabry program to fund their neurology mission and provide long-term sustainability.
Ongoing Cost-Cutting Measures
Sangamo is continuing to seek additional cost savings and has already reduced non-GAAP operating expenses by 50% year-over-year in 2024, reflecting ongoing financial pressure.
Company Guidance
During the Sangamo Therapeutics First Quarter 2025 Teleconference Call, the company provided guidance on several key metrics and operational strategies. They announced a third capsid licensing agreement with Eli Lilly, which includes an $18 million upfront fee and potential for up to $1.4 billion in milestone payments. The neurology pipeline is advancing with preparations for a Phase 1/2 study of ST-503, targeting chronic neuropathic pain, with patient enrollment expected in mid-2025 and preliminary efficacy data by Q4 2026. The Fabry program achieved significant milestones with all 32 patients in the Phase 1/2 study having completed at least 52 weeks of follow-up, which is required by the FDA for accelerated approval. A pivotal data readout is anticipated by the end of this quarter, and a BLA submission is expected as early as Q1 2026. Financially, the company announced an equity offering to extend their cash runway to late Q3 2025, aiming to secure a commercial partnership for the Fabry program to support their neurology mission. The company reduced non-GAAP operating expenses by 50% year-on-year in 2024, emphasizing a lean operational model to achieve key milestones.

Sangamo Biosciences Financial Statement Overview

Summary
Sangamo Biosciences is facing severe financial challenges, with declining revenue and profitability, a weakened balance sheet with increased leverage, and persistent negative cash flows. These factors indicate financial instability and increased operational risks.
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 Revenue63.76M57.80M176.23M111.30M110.70M118.19M
Gross Profit61.18M57.80M-45.33M99.19M101.26M-62.45M
EBITDA-72.14M-89.09M-87.43M-189.17M-173.90M-123.87M
Net Income-79.45M-97.94M-257.83M-192.28M-178.30M-121.12M
Balance Sheet
Total Assets86.17M101.64M165.32M562.51M721.92M938.55M
Cash, Cash Equivalents and Short-Term Investments25.18M41.92M81.00M277.63M464.72M691.95M
Total Debt24.88M30.57M38.10M43.11M48.08M42.09M
Total Liabilities81.26M78.86M82.43M267.55M346.58M441.18M
Stockholders Equity4.91M22.77M82.89M294.96M375.34M497.37M
Cash Flow
Free Cash Flow-44.89M-67.41M-246.00M-243.80M-256.53M155.16M
Operating Cash Flow-44.63M-67.14M-224.84M-223.63M-233.25M169.88M
Investing Cash Flow1.68M37.52M153.53M59.28M248.20M-271.63M
Financing Cash Flow14.39M28.38M14.59M84.66M32.86M153.10M

Sangamo Biosciences Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.53
Price Trends
50DMA
0.56
Negative
100DMA
0.72
Negative
200DMA
1.14
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
50.46
Neutral
STOCH
63.28
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 0.53 is above the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.56, and below the 200-day MA of 1.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.28 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 55 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 (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$196.42M-32.97%
47
Neutral
$129.30M-262.12%239.92%79.41%
IKIKT
46
Neutral
$137.53M-79.02%-100.00%38.72%
46
Neutral
C$194.28M-4.22-8.60%2.64%13.54%-1.44%
45
Neutral
$377.30M-32.12%10.98%
38
Underperform
$317.07M-66.13%43.21%
30
Underperform
$125.58M-744.59%27.65%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGMO
Sangamo Biosciences
0.53
0.21
65.63%
ANNX
Annexon Biosciences
2.89
-1.89
-39.54%
IKT
Inhibikase Therapeutics
1.89
0.54
40.00%
FDMT
4D Molecular Therapeutics
4.24
-17.25
-80.27%
ELTX
Elicio Therapeutics
7.91
4.17
111.50%
TERN
Terns Pharmaceuticals
4.32
-3.21
-42.63%

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.

Private Placements and FinancingBusiness Operations and Strategy
Sangamo Biosciences Announces $23 Million Share Offering
Neutral
May 13, 2025

On May 12, 2025, Sangamo Therapeutics announced an underwriting agreement with Cantor Fitzgerald & Co. for the issuance and sale of shares and warrants, aiming to raise approximately $23 million. This offering, expected to close on May 14, 2025, is part of Sangamo’s strategy to bolster its financial position, potentially impacting its market presence and stakeholder interests.

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.

Delistings and Listing ChangesRegulatory Filings and Compliance
Sangamo Biosciences Receives Nasdaq Deficiency Notice
Negative
May 6, 2025

On April 30, 2025, Sangamo Therapeutics, Inc. received a deficiency notice from Nasdaq due to its common stock’s bid price closing below $1.00 per share for 30 consecutive business days, which is below the required minimum for continued listing. The company has until October 27, 2025, to regain compliance by maintaining a minimum bid price of $1.00 per share for at least 10 consecutive business days. If compliance is not achieved by then, Sangamo may qualify for an additional 180-day compliance period, provided it meets other listing requirements and notifies Nasdaq of its intention to resolve the issue, potentially through a reverse stock split. Failure to comply could result in delisting, though the company can appeal such a decision.

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: Jun 25, 2025