Sangamo Therapeutics (SGMO) experienced a significant decline today, closing at $2.34, down 8.59% from the previous close of $2.56. The stock opened at $2.49 and reached a high of $2.50 before declining to a low of $2.32. The trading volume was 4,470,589 shares, which is 51.93% of the average volume. The decline continued after hours, with the stock plummeting 34.62% to $1.53.
The primary driver of today's downturn was Sangamo's announcement that it will regain the rights to giroctocogene fitelparvovec, a gene therapy for hemophilia A, from Pfizer. This decision by Pfizer to terminate the collaboration raised concerns about the therapy's future prospects and its impact on Sangamo's pipeline. Despite Sangamo's intention to explore new partnerships, the market reacted negatively to the perceived setback.
Additionally, Sangamo announced a licensing deal with Astellas Pharma Inc., securing $20 million upfront and potential milestone payments up to $1.3 billion. However, this positive development was overshadowed by the Pfizer news, contributing to the stock's decline.