Wedbush Cuts Price Target on Sangamo BioSciences (SGMO) Following Termination of SB-509 Program
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Price: $0.18 --0%
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Outperform rating on shares of Sangamo BioSciences (NASDAQ: SGMO) but is reducing its price target from $13 to $9.
The company reported that the SB-509 Phase 2b trial failed to provide statistical
significance for the primary and secondary endpoints in diabetic neuropathy. As a result management has decided to terminate the program.
The firm believes that management will now adjust its resources to accelerate the
SB-728-T/HIV program as preliminary data has been strong.
SGMO did reaffirm its full year operating expense outlook of $43-$47 million and year-end cash balance of $85-$90 million.
An analyst at Wedbush comments, "Sangamo has sufficient cash runway through important clinical milestones including an update on Phase 1/2 data for SB-728-T treatment of HIV/AIDS by year-end. We project cash runway well into 2013 which covers a Q4 release of Phase 1/2 data from SB-728-T treatment of HIV/AIDS in treatment naïve patients and an update on the program. We estimate a 65% chance for positive data from the HIV program could increase SGMO by about 40% or more from today’s intraday value."
For 2011, Wedbush now estimates EPS ($0.61) with $12 million in revenue. For 2012, the firm now forecasts EPS of ($0.46) with $22.9 million in revenue, down from ($0.28) with $27.7 million in revenue.
For more ratings news on Sangamo BioSciences click here and for the rating history of Sangamo BioSciences click here.
Shares of Sangamo BioSciences closed at $4.35 yesterday.
The company reported that the SB-509 Phase 2b trial failed to provide statistical
significance for the primary and secondary endpoints in diabetic neuropathy. As a result management has decided to terminate the program.
The firm believes that management will now adjust its resources to accelerate the
SB-728-T/HIV program as preliminary data has been strong.
SGMO did reaffirm its full year operating expense outlook of $43-$47 million and year-end cash balance of $85-$90 million.
An analyst at Wedbush comments, "Sangamo has sufficient cash runway through important clinical milestones including an update on Phase 1/2 data for SB-728-T treatment of HIV/AIDS by year-end. We project cash runway well into 2013 which covers a Q4 release of Phase 1/2 data from SB-728-T treatment of HIV/AIDS in treatment naïve patients and an update on the program. We estimate a 65% chance for positive data from the HIV program could increase SGMO by about 40% or more from today’s intraday value."
For 2011, Wedbush now estimates EPS ($0.61) with $12 million in revenue. For 2012, the firm now forecasts EPS of ($0.46) with $22.9 million in revenue, down from ($0.28) with $27.7 million in revenue.
For more ratings news on Sangamo BioSciences click here and for the rating history of Sangamo BioSciences click here.
Shares of Sangamo BioSciences closed at $4.35 yesterday.
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