BMO Capital initiates coverage on Sangamo BioSciences (NASDAQ: SGMO) with a Outperform rating and a price target of $19.00.

Analyst Jim Birchenough commented, "Our favorable outlook is based on its novel and proprietary approach to gene editing, a deep pipeline of gene therapy opportunities with competitive advantage, and option value from earlier programs for orphan lysosomal storage disease, Huntington’s, and Immuno-Oncology. While lead programs in Hemophilia A and B, Beta-Thalassemia, and Sickle Cell Disease have shared economics with partners Shire (SHPG) and Biogen (BIIB) and could face competition from other gene therapy approaches, we believe that Sangamo's novel zinc finger gene editing approach provides significant advantage in terms of potential durability of effect and theoretical safety issues. We do not believe that any value is being attached to Sangamo for earlier stage programs in treatment of lysosomal storage disease (LSD) and are compelled by straightforward genetic basis of disease, biologic rationale for gene editing, and pre-clinical data in hemophilia B, Hunters, Hurlers and Huntington’s. Additional opportunity to optimize CAR-T therapeutics seems under-appreciated, and long-standing program targeting HIV cure could drive additional value through collaboration."

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Shares of Sangamo BioSciences closed at $14.40 yesterday.