SGMO stock is trading down after Sangamo Therapeutics (NASDAQ:SGMO) made sizeable gains over the weekend following the release of positive results into a gene therapy hemophilia study.
Strong Results
California-based biotechnology firm Sangamo Therapeutics announced the updated phase 1/2 results of its SB-525 gene therapy treatment study in conjunction with Pfizer (NYSE:PFE). As part of the study, five patients were administered with the most efficacious dose of SB-525, and all demonstrated increased levels of Factor VIII, the blood-clotting protein that’s missing in hemophilia A, with four of the patients sustaining the activity beyond 12 weeks. SGMO stock initially gained about 10% following the results.
Stiff Competition
However, SGMO stock could come under pressure amid stiff competition in the area of hemophilia research, with several other firms developing treatments. One such company is BioMarin Pharmaceuticals (NASDAQ:BMRN), which plans to submit its gene therapy Valrox to the FDA by the end of the year and could receive approval on that as soon as the end of next year. Although trailing in its approval process, Sangamo believes that patients may wait to compare treatments before making a decision on which is the most effective.
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“We’re not that far behind,” said Sangamo CEO Sandy Macrae. “Patients will be watching the Sangamo results and deciding whether they jump early to BioMarin, or waiting and seeing the results from [our] study extended out.” He added that “each time there is an opportunity, we will show that our [therapy] is doing what it’s doing, and people will be able to make the decision about when the two are separating and when we’ve shown a definite advantage.” SGMO shares are currently trading for $10.84.
SGMO Stock Loses Earlier Gains
Despite those earlier gains, SGMO stock was brought back down by 7% during Monday afternoon trading, with some speculators claiming that Wall Street isn’t happy with the company’s management, who should be doing more to push the benefits of the treatment and the potential revenue stream it presents for the firm.
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