logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Sangamo BioSciences (SGMO) Hits 10-Year High on Deal with Biogen (BIIB)

By  +Follow January 9, 2014 12:51PM
Share:
Tickers Mentioned:

Shares in Richmond, CA-based clinical stage biopharmaceutical company Sangamo BioSciences (SGMO) spiked nearly 35 percent on Thursday on news of a partnership with Biogen Idec (BIIB) to develop treatments for disorders affecting hemoglobin.

Biogen made an initial payment of $20 million to Sangamo as part of a deal that will total some $300 million in funding as well as double-digit royalties for Sangamo.

Lucrative Deal Drives SGMO to 10-Year High

On the whole, the size and generosity of the deal appear to make this a major win for Sangamo.

"The deal terms are very lucrative for a pre-clinical platform,” said Wedbush analyst Liana Moussatos. “So I think Biogen must have been impressed with the pre-clinical data that Sangamo presented last month."

The spike drove Sangamo to close to $19 a share, its highest level since 2001. It also passed the previous five-year high the company reached when shares were touching $18.50 in 2007.

Hemoglobin Disorders Affect Blood’s Ability to Carry Oxygen

Hemoglobin is the component of blood that carries oxygen, and disorders affecting hemoglobin include sickle cell disease and beta thalassemia. Both are very serious conditions and included in the category known as hemoglobinopathies.

Sangamo has developed technology to replace defective genes in patients with a corrective one, and Biogen appears to believe that this method has the potential to create one treatment for both diseases.

Sangamo will be responsible for research and development of the treatment up to the initial proof-of-concept trial.

SGMO Product Pipeline Could Have Potential

While Thursday’s announced partnership clearly took Sangamo to new levels, boosting the company’s market cap from $843.57 million to almost $1.15 billion in a matter of hours, the company has several treatments in its product pipeline that could also be major developments.

Most notable is lead therapy SB-728, which has the potential to develop into a functional cure for HIV/AIDS. The treatment would function by drawing immune cells, removing the protein pathway used by HIV to infect them, and then returning them to the patient’s bloodstream.

Sangamo’s promise appears to have won over investors, with the stock jumping over 130 percent despite the company failing to turn a profit and garnering revenues under $25 million in each of the last five years.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for SGMO
John Turner
1 Sep 14 14:00:56
$SGMO Sangamo BioSciences Announces Presentation At The 2014 Wedbush ... http://t.co/imqVKdgVjY
Daily Contracts
1 Sep 14 11:48:00
Real-Time feed of company contracts, original agreements and executive updates from Sangamo BioSciences, Inc. $SGMO http://t.co/eXZLQONQKL
Business News Now
1 Sep 14 09:46:19
$SGMO: Grading Sobek's Mid-Year Biotech Stock Predictions http://t.co/NMylojq4yS http://t.co/X1FJa60SZg
Irma Doucet
1 Sep 14 08:00:48
$SGMO Sangamo BioSciences Inc. (SGMO) Jumps 5.86% on August 25 http://t.co/2VHgpu0wkY
Samuel Brown
1 Sep 14 08:00:47
$SGMO Commit To Purchase Sangamo BioSciences At $10, Earn 18% Using Options http://t.co/MFT6FYXD4s
Samuel Brown
1 Sep 14 07:31:28
$SGMO Commit To Purchase Sangamo BioSciences At $10, Earn 18% Using Options http://t.co/VHMqpbVdWC
Thomas Collins
1 Sep 14 07:00:30
$SGMO Sangamo BioSciences Inc. (SGMO) Jumps 5.86% on August 25 http://t.co/fq35OXKZT9
Harry Walkman
1 Sep 14 07:00:29
$SGMO Commit To Purchase Sangamo BioSciences At $10, Earn 18% Using Options http://t.co/AHYxCpjeqh
Biz Headlines
31 Aug 14 07:46:25
$SGMO: Why Sangamo Biosciences (SGMO) Could Be Positioned for a Surge? http://t.co/F6E2VARA8C http://t.co/4RQ6cxA1Ok
Kent Johnson
29 Aug 14 11:56:16
Biotechs on watch: $sgmo $dyax $acad $nvax $isis $sgen $pcyc $incy
Bulls vs Bears
29 Aug 14 11:46:24
$SGMO: Sangamo Biosciences Director Sells $125600 in Stock (SGMO) http://t.co/jrurA19IGA http://t.co/gi5H1u76hE
Stock Market Monitor
29 Aug 14 10:46:24
$SGMO: Sangamo BioSciences Inc. (SGMO) Jumps 5.86% on August 25 http://t.co/z5Y6jeXDVM http://t.co/zjrg926As3
Samuel Brown
29 Aug 14 10:31:16
$SGMO Sangamo BioSciences Inc. (SGMO) Jumps 5.86% on August 25 http://t.co/JIWEjdZwcV
V.S. Schulz
29 Aug 14 08:44:16
RT @zzlangerhans: Correction: Sold 150 $SGMO at 14.26 for #zzporte loss of $1026, still have 200 shares cost basis 21.1 @portefeuillefun
Tony Friedman
29 Aug 14 08:43:29
Correction: Sold 150 $SGMO at 14.26 for #zzporte loss of $1026, still have 200 shares cost basis 21.1 @portefeuillefun
Jack Trader
29 Aug 14 07:30:29
$SGMO Commit To Purchase Sangamo BioSciences At $10, Earn 18% Using Options http://t.co/3wPtBDDTJ6
Business Headlines
28 Aug 14 01:46:19
$SGMO: Nasdaq stocks posting largest percentage decreases http://t.co/KVYcGbVoOa http://t.co/0dov2r8h8O
Media Sentiment
28 Aug 14 01:35:04
$SGMO received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 6
TradingView
28 Aug 14 01:31:27
$SGMO - Will The Bearish Harami Stop The Bullish Diamond Bottom? - https://t.co/nOvWRUiesw
TV_Trading Ideas
28 Aug 14 00:50:49
Will The Bearish Harami Stop The Bullish Diamond Bottom? $SGMO http://t.co/ur9a6MnpAN
Jack Trader
27 Aug 14 15:31:01
$SGMO Sangamo BioSciences Announces Presentation At The 2014 Wedbush ... http://t.co/Zx7uTZfwbf
Freefdawatchlist
27 Aug 14 15:29:21
http://t.co/tX9TUOZvnz Pre-Market Trading Ideas for Aug 28 : $WSM, $GES, $SGMO, $FEYE, $CERG, $WDAY, $TD, $DG, $ANF, $CSTM, $DUST, $UVXY
Market Monitor
27 Aug 14 12:46:15
$SGMO: Moving Stocks: Freeport-McMoRan Inc. (NYSE:FCX), Sangamo Biosciences Inc ... http://t.co/V3WMvmlWg3 http://t.co/X9gKrEvHvb
Market Int Center
27 Aug 14 12:01:55
Potential Sangamo Biosciences $SGMO Trade Targets 8.33% Return ( http://t.co/aekJckUKDD )
Stock Market Monitor
27 Aug 14 10:46:18
$SGMO: Top News: ChipMOS TECHNOLOGIES (NASDAQ:IMOS), Sangamo Biosciences ... http://t.co/OxQTrBRASS http://t.co/rremgsFPwd
Catalyst Trader
26 Aug 14 19:15:44
@Trading4dollas $SGMO acquisition by $BIIB does make sense with existing partnerships. No position
Phil Martin
26 Aug 14 16:22:13
$SGMO http://t.co/YmVehRpayv
Market News
26 Aug 14 11:46:13
$SGMO: Nasdaq stocks posting largest percentage decreases http://t.co/G7a6ALDwA9 http://t.co/NOoojuU6PU
John Turner
26 Aug 14 11:30:35
$SGMO Sangamo BioSciences Inc. (SGMO) Jumps 5.86% on August 25 http://t.co/rE5oQ02kEe
Quantitude Capital
26 Aug 14 06:39:56
$SGMO recruiting for "Repeat Doses of SB-728mR-T After Cyclophosphamide Conditioning in HIV-Infected Subjects on HAART"
Equities.com
25 Aug 14 15:57:27
Sangamo BioSciences Inc. (SGMO) Jumps 5.86% on August 25 $SGMO http://t.co/GFKL8rM2oc
Daily Contracts
25 Aug 14 14:41:01
Real-Time feed of company contracts, original agreements and executive updates from Sangamo BioSciences, Inc. $SGMO http://t.co/eXZLQONQKL
Robin Murray MD CFII
25 Aug 14 13:16:30
$SGMO nice bull bounce now a good #BioTech #Spec #BUY http://t.co/aDbiYVdZHI http://t.co/QuQ0T2L4DM http://t.co/ZXwY2XcOlx #stockcharts
Market News
25 Aug 14 09:46:21
$SGMO: Biotech Equities Technical Analysis -- BioMarin Pharma, Merrimack Pharma ... http://t.co/ypXYqpstxW http://t.co/VPyELp41mD
Daily Contracts
25 Aug 14 08:39:00
Real-Time feed of company contracts, original agreements and executive updates from Sangamo BioSciences, Inc. $SGMO http://t.co/eXZLQONQKL
Mitch
25 Aug 14 07:39:17
RT @MTSLNews: #biotechs ITMN buy by Roche sets new stage for valuations of scarcity of proprietary assets $ALKS $ISIS $INCY $MDCO $NKTR $NV…
BioInvest
25 Aug 14 07:38:25
#biotechs ITMN buy by Roche sets new stage for valuations of scarcity of proprietary assets $ALKS $ISIS $INCY $MDCO $NKTR $NVAX $PCYC $SGMO
Thomas Collins
25 Aug 14 06:30:41
$SGMO Why Sangamo Biosciences (SGMO) Could Be Positioned for a Surge? http://t.co/X3v5Mi4ncQ
				
				
By  +Follow January 9, 2014 12:51PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.