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 focused on developing zinc finger DNA-binding proteins, rose as much as 11% after the company reported its first-quarter results.
So what: Although Sangamo has no drugs currently approved by the Food and Drug Administration, it still generated $4.6 million in revenue primarily due to a collaboration it signed with Shire last year. Net loss per share also shrank modestly to $0.13 from a loss per share of $0.14 in the year-ago period. Both figures easily surpassed the $3.8 million in revenue and $0.17 per-share loss expected by analysts. In addition, Sangamo is forecasting full-year revenue of $20 million to $24 million, more or less in line with the $20.7 million currently estimated by Wall Street.
Now what: Not to take away from Sangamo's nice one day move higher, but its earnings reports at this stage of its existence are relatively short-term drivers. For Sangamo, all eyes will be on the development of SB-728, which is currently in mid-stage trials for the treatment of HIV. Sure, there are plenty of other preclinical programs ongoing at Sangamo, but everything at the moment is riding on the success of SB-728. Until we get the top-line data from that study, consider everything else to be mostly white noise.
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Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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