FDMT - Sangamo Therapeutics: A Bust Or Billion Dollar Valuation In The Remaking

2024-07-23 19:32:16 ET

Summary

• Sangamo Therapeutics, Inc. is almost out of cash, and as such, at risk of bankruptcy.  Therefore, investing in this company is not a good idea for most investors.
• 3 of its assets have updates coming over the next 1–6 months that could realistically bring in a combination of ~$1B of cash & milestones over the next 12–18 months.
• Due to its history of burning cash and not being able to get a drug approved yet, Sangamo Therapeutics's stock price closed Monday, 07/22/24 at $0.395/s or a valuation of ~$82M.
• Below, I will discuss why I think the company is going to make it and possibly deliver 5-10x over the next 6–12 months.

Introduction To The Company

My first notes on Sangamo Therapeutics, Inc. ( SGMO ) go back to early 2014, when I was researching the “new” CRISPR gene editing companies, Editas Medicine ( EDIT ), Intellia Therapeutics ( NTLA ) and CRISPR Therapeutics ( CRSP ). SGMO had an old Zink Finger Protein [ZFP] technology that appeared to be potentially safer than CRISPR, but CRISPR on the surface looked like it would be able to do so much more. To me, it started to look like ZFPs might have already lost their moment, so I put SGMO in my “Needs More” file and updated it over the years.

During the past decade, the company struck many partnerships, made many promises and ultimately blew threw a lot of money, which happens to most potential new platform companies. However, over the past year, a couple of SGMO’s lead assets started to catch my attention due to other investments I had made in rival gene editing companies and/or disease states; specifically, Biomarin Pharmaceuticals ( BMRN ) and uniQURE ( QURE ) in hemophilia A & B respectively; Amicus Therapeutics ( FOLD ) and AvroBio (formerly AVRO) for Fabry disease; and Voyager Therapeutics ( VYGR ), Wave Life Sciences ( WVE ) and Meira GTx ( MGTX ; see my recent SA article here ) for their gene therapy [GTx] work on vectors, genes, capsids, promoters, etc. for ways to potentially deliver genetic payloads across the blood brain barrier [BBB]. SGMO now has a few other assets in its pipeline that are very intriguing to me as well, but those are still very early and to move forward will require significant capital that the company does not have…yet....

For further details see: