In a research report released Friday, Cowen’s healthcare analyst Ritu Baral shed some light on Sangamo Biosciences, Inc. (NASDAQ:SGMO), after the company announced a restructuring of its Shire collaboration, wherein SGMO is regaining rights to the hemophilia A and B programs, and Shire is retaining rights to the Huntington’s disease program and one other as yet unnamed program.
Baral noted, “We have mixed feelings on the restructuring: on one hand, we have questioned Shire’s commitment to the program given ongoing delays in the IND filing. On the other hand, we foresee a competitive landscape for hemophilia gene therapy/editing therapies by the time SGMO’s IVPRP program could be approved, at which point a commercially experienced partner would be an advantage.”
Furthermore, “Shire has opted to maintain the Huntington’s partnership with SGMO, and now owes lower royalties to SGMO on what we view as one of the most promising of SGMO’s ZFP programs. SGMO indicates the decision was made on a purely strategic basis (likely related to its Baxalta bid), and that it ‘payed’ for return of the programs with the lower Huntington’s royalties.”
The analyst reiterated an Outperform rating on Sangamo Biosciences shares, while no price target was provided.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ritu Baral has a total average return of 19.6% and a 49.7% success rate. Baral has a -41.5% average return when recommending SGMO, and is ranked #79 out of 3747 analysts.
All the 6 analysts polled by TipRanks rate Sangamo Biosciences stock a Buy. With a return potential of 213.7%, the stock’s consensus target price stands at $20.80.
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