Sangamo Therapeutics, Inc. is experiencing a significant decline in its stock price after Pfizer announced it would return the development and commercialization rights for the hemophilia A gene therapy candidate, giroctocogene fitelparvovec, to Sangamo. This decision marks a major setback for Sangamo, which had been relying on the partnership with Pfizer to advance the therapy. The collaboration, initially established in 2017, was expected to bring substantial milestone payments to Sangamo, totaling $220 million. However, Pfizer's withdrawal from the agreement has cast doubt on the future prospects of the therapy and Sangamo's financial stability.
The news of Pfizer's decision has led to a sharp reaction in the market, with Sangamo's stock plummeting in after-hours trading. The stock closed at $2.34 today, reflecting an 8.59% decline during regular trading hours. However, the after-hours trading has seen a dramatic drop of 56.42%, bringing the stock price down to $1.02.