J.P. Morgan Sees Sangamo Biosciences, Inc. As Attractive Investment Opportunity

In a report published Tuesday, J.P. Morgan analyst Cory Kasimov reiterated an Overweight rating and $22.00 price target on Sangamo Biosciences, Inc. (NASDAQ: SGMO).

In the report, J.P. Morgan noted, “SGMO today provided an update on the ongoing Phase 1/2 trials of SB-728-T in HIV infected patients.

"The key incremental updates were 1) the delta32 hetero patient has now had controlled VL for 59 wks (vs. 45 wks at ASGCT, though at 2Q mgmt indicated it was >1yr); 2) a 2nd pt in the 1101 cytoxan trial experienced a 2 log decrease in circulating VL while not on ARTs, and the same 2 log decrease in another pt has been maintained for > 39 wks (vs. 24 wks as of ASGCT and 34 wks at 2Q); and 3) the 1g/m2 cytoxan dose has been chosen to take forward into the Phase 2 trial evaluating mRNA delivery of the ZFNs.

"While we continue to be encouraged by updates from the ongoing HIV program, we view it more as promising clinical POC for other earlier stage programs given the company intends to partner the HIV asset post Phase 2 development (data dependent). Overall, with a differentiated and productive technology platform as well as a diversified early stage pipeline, we see SGMO as an attractive way to gain exposure to the emerging gene therapy field. Reiterate OW.”

Sangamo Biosciences closed on Monday at $12.77.