Sangamo price target lowered to $2 from $3 at Wells Fargo

Wells Fargo analyst Yanan Zhu lowered the firm’s price target on Sangamo (SGMO) to $2 from $3 and keeps an Equal Weight rating on the shares. The firm says Pfizer’s (PFE) return of Sangamo’s hemophilia A program, so close to the planned biologics license application filing, came as a surprise. The key implication is that Sangamo is no longer eligible for $220M in regulatory and first-sales milestones, the analyst tells investors in a research note. Wells believes this further increases funding pressure on Sangamo. The company’s cash position can fund operations into Q1 of 2025, and the company is seeking to partner its Fabry gene therapy program in an effort to extend cash runway, adds Wells.