Sangamo Jumps on Newest Pfizer Collaboration
Sangamo Therapeutics Inc. (NASDAQ: SGMO) shares made a handy gain on hump day after the firm announced that it would be collaborating with pharma giant Pfizer Inc. (NYSE: PFE) for the treatment of amyotrophic lateral sclerosis (ALS) and frontotemporal lobar degeneration (FTLD).
Under the terms of the collaboration agreement, Sangamo will receive a $12 million upfront payment from Pfizer. Sangamo will be responsible for the development of ZFP-TF candidates. Pfizer will be operationally and financially responsible for subsequent research, development, manufacturing and commercialization
Also, Sangamo is eligible to receive potential development and commercial milestone payments of up to $150 million, as well as tiered royalties on net sales.
Keep in mind that Sangamo has a market cap of only roughly $1.5 billion.
Back in May 2017, Sangamo and Pfizer entered into an exclusive, global collaboration and license agreement for the development and commercialization of potential gene therapy products for hemophilia A, including SB-525, which entered the clinic in August 2017.
Dr. Sandy Macrae, CEO of Sangamo, commented:
We are excited to continue our collaborative relationship with Pfizer with this new program using Sangamo’s zinc finger protein technology to develop a potential gene therapy for patients with certain forms of ALS and FTLD, devastating diseases with very limited treatment options. The precision and flexibility of zinc finger proteins enables targeting of virtually any genetic mutation. Collaboration with the right partner for a given therapeutic application is a key component of our corporate strategy and enables us to pursue the vast opportunity set of our platform.
Shares of Sangamo were last seen up about 6% at $18.60, with a consensus analyst price target of $17.33 and a 52-week range of $3.00 to $18.70.
Pfizer was trading at $36.44 a share, in a 52-week range of $30.90 to $37.35 and a consensus price target of $38.29.