Sangamo Therapeutics is facing a challenging start to the year as its stock continues to decline following Pfizer's decision to terminate their collaboration on the hemophilia A gene therapy, giroctocogene fitelparvovec. Despite positive Phase III trial results, Pfizer has opted not to proceed with regulatory submissions, leaving Sangamo to regain full rights to the program. This move has deprived Sangamo of up to $220 million in potential milestone payments, exacerbating concerns about the company's financial stability. Sangamo is now exploring options to advance the program independently or with a new partner.
The market's reaction to the termination has been notably negative, reflecting investor concerns over Sangamo's ability to navigate the loss of Pfizer's support. The biotech company is under pressure to secure additional funding or partnerships to sustain its operations beyond the first quarter of 2025. Despite the setback, Sangamo remains committed to advancing its genomic medicine pipeline, including its Fabry gene therapy program, which is expected to progress towards a potential BLA submission in the latter half of 2025.
Sangamo Therapeutics' stock is currently trading at $1.01, down 0.98% from its previous close of $1.02. Despite being early in the trading day, the stock has already seen a volume of 1,157,020 shares, which is 12.10% of its average daily volume of 9,562,383 shares.