Sangamo selloff on Pfizer decision overdone, says H.C. Wainwright

H.C. Wainwright analyst Patrick Trucchio says that while Pfizer (PFE) ending its hemophilia A collaboration with Sangamo (SGMO) is disappointing, the 50% selloff in Sangamo shares today is overdone. The firm says the update does not dent its confidence in the company’s pipeline programs that underpin the stock’s valuation. These programs include isaralgagene civaparvovec, an AAV2/6-based gene therapy program for the treatment of Fabry disease, as well as the potential for STAC-BBB, Sangamo’s novel central nervous system-targeted adeno-associated virus capsid, which has demonstrated “potent” blood-brain barrier penetration and neuronal transduction in nonhuman primates with intravenous administration, the analyst tells investors in a research note. It attributes value of $4 per share to isa-vec and $4 per share to Sangamo’s neurology-focused pipeline. H.C. Wainwright believes the shares are “very attractive” ahead of the next updates on the Fabry program and neurology pipeline. It keeps a Buy rating on Sangamo with a $10 price target. The stock is down 55%, or $1.29, to $1.05 in late morning trading.