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Sangamo Biosciences (SGMO)
NASDAQ:SGMO
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Sangamo Biosciences
(NASDAQ:SGMO)
39Underperform
Positive Factors
Clinical Development
The start of first-in-human clinical trials for ST-503 in chronic neuropathic pain is anticipated, followed by the prion zinc finger repressor program, indicating multiple upcoming catalysts spanning regulatory, clinical, and business development milestones.
Licensing Agreement
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.
Regulatory Progress
SGMO announced alignment with FDA on a regulatory pathway to accelerated filing for their AAV-based GTx '920 for Fabry disease.
Negative Factors
Cash Runway
Fabry partnership remains critical for further extending cash runway.
Financial Performance
SGMO reported a 4Q24 net loss of ~$23.4M and LPS of ($0.11).
Program Uncertainty
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 (SGMO) vs. S&P 500 (SPY)
Market Cap
$163.66M
Dividend YieldN/A
Average Volume (3M)8.50M
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth-67.20%
EPS Growth64.66%
CountryUS
Employees183
SectorHealthcare
Sector Strength60
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.11
Shares Outstanding224,710,020
10 Day Avg. Volume3,486,754
30 Day Avg. Volume8,501,655
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.24
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.51
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside669.23% 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 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.40
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
Negative
0.65
Price Trends
0.81
Negative
1.14
Negative
1.20
Negative
Market Momentum
-0.03
Positive
41.12
Neutral
21.67
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 0.65 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.81, and below the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.12 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.24B | 3.76 | -41.88% | 2.85% | 17.01% | 0.78% | |
46 Neutral | $144.22M | ― | -52.00% | ― | -100.00% | 38.72% | |
45 Neutral | $262.88M | ― | -29.56% | ― | ― | 10.98% | |
39 Underperform | $163.66M | ― | -187.83% | ― | -67.20% | 64.66% | |
39 Underperform | $142.68M | ― | -25.95% | ― | ― | ― | |
38 Underperform | $180.48M | ― | -50.84% | ― | ― | 43.21% | |
30 Underperform | $81.84M | ― | -9999.00% | ― | ― | 27.65% |
* Healthcare Sector Average
Performance Comparison
SGMO
Sangamo Biosciences
0.65
0.15
30.00%
ANNX
Annexon Biosciences
1.69
-3.18
-65.30%
IKT
Inhibikase Therapeutics
1.94
0.54
38.57%
FDMT
4D Molecular Therapeutics
3.12
-23.21
-88.15%
ELTX
Elicio Therapeutics
4.96
-4.39
-46.95%
TERN
Terns Pharmaceuticals
3.02
-3.03
-50.08%
Sangamo Biosciences Earnings Call Summary
Earnings Call Date:Mar 17, 2025
(Q4-2024)
| % Change Since: -35.64%|
Next Earnings Date:May 12, 2025
Earnings Call Sentiment Neutral
The call highlighted significant progress in Sangamo's neurology pipeline and strategic partnerships, along with financial achievements. However, challenges remain in securing a Fabry commercial partner and addressing financing needs, which are critical for future success.Q4-2024 Updates
Positive Updates
Progress in Neurology Therapies
Sangamo has advanced its prioritized neurology therapies towards the clinic, securing its first-ever neurology IND in idiopathic small fiber neuropathy and demonstrating non-clinical proof of concept for a product candidate in prion disease.
Strategic Partnerships
Sangamo announced two blue-chip pharma agreements for neurotrophic capsids with Genentech and Astellas, expanding their neurology disease targets.
Fabry Disease Gene Therapy Advancements
Sangamo's Fabry gene therapy study continues to generate best-in-class data, with a pivotal data readout expected in mid-2025. The FDA has provided a clear regulatory pathway to accelerated approval.
Financial Achievements
Since 2023, Sangamo has reduced non-GAAP operating expenses by nearly half year-over-year and raised over $100 million in funding through non-dilutive license fees, milestone payments, and equity financing.
ST-503 Development for Chronic Neuropathic Pain
ST-503 is ready to enter the clinic, targeting Nav1.7 sodium channels in sensory neurons, with promising preclinical results showing significant reduction in pain hypersensitivity.
Negative Updates
Fabry Commercial Partner Negotiations
Securing a commercial partner for Fabry remains a key focus, with ongoing negotiations proving time-consuming and complex, delaying the anticipated partnership announcement to the second quarter of 2025.
Financing Needs
Sangamo emphasizes the need to address financing challenges to fulfill its potential, highlighting ongoing efforts to secure additional capital and partnerships.
Hemophilia Program Transition
The hemophilia program was returned from Pfizer, and Sangamo is in early stages of finding a new partner, with the challenge of transitioning the program efficiently.
Company Guidance
During the Sangamo Therapeutics Fourth Quarter and Full Year 2024 teleconference call, the company provided guidance on several key metrics and upcoming milestones. Sangamo highlighted progress in their neurology pipeline, including securing their first neurology IND for idiopathic small fiber neuropathy and advancing a product candidate for prion disease. They announced collaborations with Genentech and Astellas for neurotrophic capsids, which could enhance delivery mechanisms for their therapies. Financially, Sangamo reduced non-GAAP operating expenses by nearly half since 2023 and raised over $100 million through license fees, milestone payments, and equity financing in 2024. The company emphasized the potential for accelerated approval of their Fabry disease gene therapy, which could shorten the approval timeline by approximately three years, with pivotal data expected in mid-2025. They are also negotiating to secure a commercial partner for their Fabry program, with an anticipated partnership in the second quarter of 2025. Additionally, Sangamo is in advanced contract negotiations for a third STAC-BBB license agreement, with potential news by the end of the quarter. The company aims to address its financing needs to support continued growth and development of its therapeutic programs.Sangamo Biosciences Corporate Events
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.
Spark’s Take on SGMO Stock
According to Spark, TipRanks’ AI Analyst, SGMO is a Neutral.
Sangamo Biosciences presents a mixed picture. Significant financial challenges, including declining revenues and persistent negative cash flows, weigh heavily on its overall score. Technical indicators suggest a bearish trend, and valuation metrics pose concerns with a negative P/E ratio and no dividend yield. However, positive developments in strategic partnerships and neurology pipeline advancements provide some optimism, though offset by the need to secure additional financing and a partner for the Fabry program.
To see Spark’s full report on SGMO stock, click here.
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.