Over the past year, we witnessed the incredible transformation of Sangamo Therapeutics (SGMO) from a Wall Street has-been to a widely respected powerhouse in both gene therapy and gene editing, notes John McCamant, editor The Medical Technology Stock Letter.
In fact, this year it became the first company ever to treat a patient with gene editing technology.
Despite all the hype for other gene editing technologies like CRISPR and TALNS, the firm’s tightly held, widely-patented zinc finger technology (ZFN) has emerged as major player in the exciting fields of gene therapy and gene editing.
Meanwhile, there are two partnerships to come that represent significant catalysts for the company.
While not giving specific dates or deadlines, Sangamo is in talks to form new collaborations with large pharma/biotech companies for both its cellular immuno-oncology (CAR-T) and tau protein/Alzheimer’s disease programs.
In our view, these external programs are not on any investors’ radar screens yet, but the size of the deal(s) will, in our view, be large enough and the partners high-end enough for investors to begin to take notice and add substantially to the stock’s valuation.
Importantly, Sangamo is poised to deliver proof-of-concept data in 2018 from their four clinical stage programs, hemophilia A, MPS I & II, and Beta Thal. Positive data from any of these four programs will also serve as positive stock catalysts as it would help de-risk the other programs.
As a reflection of our growing confidence in both the firm’s technology platform and management’s ability to execute and create significant shareholder value, we recently raised our buy price from $15 to $19. Our target price is $26.
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