Update shared on 27 Nov 2025
Analysts have lowered Sangamo Therapeutics’ price target from $5 to $1, citing uncertainty around future partnership deals. This is despite recent regulatory updates and an extended cash runway.
Analyst Commentary
Recent analyst updates have brought both cautious and optimistic perspectives on Sangamo Therapeutics' outlook following its third quarter report and updated regulatory guidance.
Bullish Takeaways
- Bullish analysts note that the FDA's reaffirmation of an accelerated approval pathway using eGFR slope as an endpoint supports the company's regulatory strategy and near-term milestones.
- The extension of Sangamo's cash runway into the first quarter of 2026 is viewed as strengthening financial stability and providing additional time to execute on strategic priorities.
- Progress in regulatory engagement is seen as positive for maintaining development momentum, which could support future growth and partnerships.
Bearish Takeaways
- Bearish analysts express concern about uncertainty surrounding future partnership deals, particularly in relation to the Fabry program.
- The recent price target reduction highlights skepticism about Sangamo’s ability to execute on business development in the current environment.
- Continued reliance on successful deal-making to drive valuation and growth remains a significant risk.
What's in the News
- The FDA has accepted Sangamo's request for a rolling submission and review of a Biologics License Application for isaralgagene civaparvovec (ST-920), its investigational gene therapy for Fabry disease, under the accelerated approval pathway. The primary basis of approval will be the mean annualized eGFR slope at 52 weeks. (Key Developments)
- Sangamo received a 180-day extension, until April 27, 2026, from Nasdaq to regain compliance with the $1.00 minimum bid price requirement for its common stock listing. Failing to meet this requirement could result in delisting. (Key Developments)
- The company presented detailed Phase 1/2 STAAR study results for ST-920 at the International Congress of Inborn Errors of Metabolism 2025, showing a positive mean annualized eGFR slope and reinforcing the therapy’s potential benefits. (Key Developments)
- Chief Financial Officer Prathyusha Duraibabu has resigned, effective October 1, 2025, to take a leadership role at a privately-held artificial intelligence company. (Key Developments)
Valuation Changes
- Fair Value Estimate remains unchanged at $3.25 per share.
- Discount Rate has risen slightly from 7.28% to 7.34%.
- Revenue Growth Projection remains stable at approximately 78.7%.
- Net Profit Margin forecast has increased substantially from 7.94% to 14.54%.
- Future Price-to-Earnings Ratio (P/E) has fallen significantly from 111.07x to 60.75x.
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