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Sangamo Biosciences (SGMO)
NASDAQ:SGMO
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Sangamo Biosciences
(NASDAQ:SGMO)
Rating:43Neutral
Price Target:
$0.50
▲(2.04%Upside)
Positive Factors
Neurology Innovation
ST-503 is a novel, non-opioid, gene regulation-based approach to treating intractable pain and a compelling value driver within Sangamo’s neurology pipeline.
Partnerships
Sangamo's STAC-BBB platform has secured high-value partnerships with Genentech, Astellas, and Eli Lilly, with further collaborations anticipated.
Negative Factors
Financial Challenges
SGMO reported a 4Q24 net loss of ~$23.4M and LPS of ($0.11), indicating financial challenges.
Financial Performance
SGMO reported a 1Q25 net loss of ~$30.6M and LPS of ($0.14).
Sangamo Biosciences (SGMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$123.44M
Dividend YieldN/A
Average Volume (3M)4.83M
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth239.92%
EPS Growth79.41%
CountryUS
Employees183
SectorHealthcare
Sector Strength58
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.14
Shares Outstanding245,401,980
10 Day Avg. Volume5,146,028
30 Day Avg. Volume4,830,875
Financial Highlights & Ratios
PEG Ratio-1.55
Price to Book (P/B)1.64
Price to Sales (P/S)0.00
P/FCF Ratio-1.99
Enterprise Value/Market Cap7.31
Enterprise Value/Revenue4.85
Enterprise Value/Gross Profit14.75
Enterprise Value/Ebitda-1.90
Forecast
1Y Price Target
$4.10Price Target Upside736.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Sangamo Biosciences Business Overview & Revenue Model
Company DescriptionSangamo Biosciences (SGMO) is a biotechnology company that specializes in developing and commercializing genomic therapies. The company focuses on leveraging its proprietary zinc finger nuclease (ZFN) technology to create treatments for genetic diseases and conditions. Sangamo's core products and services include gene editing, gene therapy, cell therapy, and genome regulation technologies aimed at addressing complex diseases such as hemophilia, sickle cell disease, and certain neurological disorders.
How the Company Makes MoneySangamo 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 Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -34.67%|
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 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.35
Negative
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.40
Negative
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.30
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 63.76M | 57.80M | 176.23M | 111.30M | 110.70M | 118.19M | Gross Profit |
| 61.18M | 57.80M | -45.33M | 99.19M | 101.26M | -62.45M | EBIT |
| -82.07M | -103.97M | -274.00M | -201.28M | -183.34M | -129.55M | EBITDA |
| -72.14M | -89.09M | -87.43M | -189.17M | -173.90M | -123.87M | Net Income Common Stockholders |
| -79.45M | -97.94M | -257.83M | -192.28M | -178.30M | -121.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 25.18M | 41.92M | 81.00M | 277.63M | 464.72M | 691.95M | Total Assets |
| 86.17M | 101.64M | 165.32M | 562.51M | 721.92M | 938.55M | Total Debt |
| 24.88M | 30.57M | 38.10M | 43.11M | 48.08M | 42.09M | Net Debt |
| -304.00K | -11.35M | -7.10M | -57.34M | -130.79M | -89.24M | Total Liabilities |
| 81.26M | 78.86M | 82.43M | 267.55M | 346.58M | 441.18M | Stockholders Equity |
| 4.91M | 22.77M | 82.89M | 294.96M | 375.34M | 497.37M |
| Cash Flow | Free Cash Flow | ||||
| -44.89M | -67.41M | -246.00M | -243.80M | -256.53M | 155.16M | Operating Cash Flow |
| -44.63M | -67.14M | -224.84M | -223.63M | -233.25M | 169.88M | Investing Cash Flow |
| 1.68M | 37.52M | 153.53M | 59.28M | 248.20M | -271.63M | Financing Cash Flow |
| 14.39M | 28.38M | 14.59M | 84.66M | 32.86M | 153.10M |
Sangamo Biosciences Technical Analysis
Negative
0.49
Price Trends
0.61
Negative
0.81
Negative
1.16
Negative
Market Momentum
-0.03
Negative
42.03
Neutral
41.59
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 0.49 is above the 20-day moving average (MA) of 0.49, below the 50-day MA of 0.61, and below the 200-day MA of 1.16, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 41.59 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 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $5.41B | 3.27 | -45.10% | 3.29% | 16.81% | 0.02% | |
48 Neutral | $208.46M | ― | -32.97% | ― | ― | ― | |
46 Neutral | $138.28M | ― | -79.02% | ― | -100.00% | 38.72% | |
45 Neutral | $343.24M | ― | -32.12% | ― | ― | 10.98% | |
43 Neutral | $123.44M | ― | -262.12% | ― | 239.92% | 79.41% | |
38 Underperform | $297.33M | ― | -66.13% | ― | ― | 43.21% | |
30 Underperform | $121.58M | ― | -744.59% | ― | ― | 27.65% |
* Healthcare Sector Average
Performance Comparison
SGMO
Sangamo Biosciences
0.49
0.08
19.51%
ANNX
Annexon Biosciences
2.49
-2.87
-53.54%
IKT
Inhibikase Therapeutics
1.86
0.27
16.98%
FDMT
4D Molecular Therapeutics
4.39
-19.41
-81.55%
ELTX
Elicio Therapeutics
7.60
-0.38
-4.76%
TERN
Terns Pharmaceuticals
3.88
-4.08
-51.26%
Sangamo Biosciences Corporate Events
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.