Why Sangamo Biosciences Inc. Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Sangamo Biosciences (NASDAQ: SGMO  ) , a clinical-stage biopharmaceutical company developing zinc finger DNA binding proteins for gene regulation and modification, soared as much as 40% after announcing a collaborative agreement with Biogen Idec (NASDAQ: BIIB  ) to develop therapeutics for hemoglobinopathies.

So what: Under the terms of the deal, Biogen Idec will license Sangamo's proprietary genome-editing technology platform to develop therapies targeting sickle cell disease and beta-thalassemia. Sangamo's technology will allow Biogen to approach these diseases in two ways: either by knocking out the regulators that cause the disease, or to reinsert a corrective gene to replace the defective one. The deal nets Sangamo $20 million upfront, and Biogen Idec will reimburse Sangamo for any of its internal and external research. Sangamo also has the potential to earn an additional $300 million in milestone, development, and regulatory payments.

Now what: There's certainly nothing bad to say about either company with regard to this deal. Biogen Idec gets access to an exciting gene-altering platform for what I consider to be pennies on the dollar while Sangamo gets more cash added to the bank and has its research expenses paid for (with regard to sickle cell disease and beta-thalassemia) by Biogen Idec. I do believe the excitement of this deal, though, has been more than baked into Sangamo's share price and would caution even health-care-savvy investors to take a step back and let Sangamo's ongoing research do the talking from here on out.

Could this high growth stock offer even more potential than Sangamo?
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.


Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 10, 2014, at 12:25 AM, skeyewater wrote:

    Zero data. How many INDs this scheduled for this year? Results on expanded Phase II for HIV this year? Did you note that some Phase II participants were functionally cured at 1000 mg and they're planning 2000 and 3000 mg dosages to try to get EVERYONE! We're watching ATHX and CUR blowup on anticipation of success with UC and ALS, what do you think is going to happen if they get HIV?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2789702, ~/Articles/ArticleHandler.aspx, 12/20/2014 6:50:09 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement