Stock Analysis & Valuation Sangamo Therapeutics, Inc. (0R1D.L)

• Previous Close: £0.52
• Sector Valuation Confidence Level: High

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	17.60	3311
Intrinsic value (DCF)	1575.14	305160
Graham-Dodd Method		n/a
Graham Formula	20.80	3931

Strategic Investment Analysis

Company Overview

Sangamo Therapeutics, Inc. (LSE: 0R1D.L) is a clinical-stage biotechnology company pioneering genomic medicines to transform patient lives through gene therapy, cell therapy, genome editing, and genome regulation. Headquartered in Brisbane, California, Sangamo leverages its proprietary zinc finger protein (ZFP) technology platform to develop precision treatments for rare and complex diseases. Key pipeline candidates include SB-525 (Phase III for hemophilia A), ST-920 (Phase I/II for Fabry disease), and SAR445136 (Phase I/II for sickle cell disease). The company also explores therapies for kidney transplant rejection, cancer, and neurodegenerative disorders like Parkinson's disease. With strategic collaborations involving Biogen, Pfizer, Sanofi, and Novartis, Sangamo combines cutting-edge science with industry partnerships to advance next-generation genomic medicines. Operating in the high-growth pharmaceuticals sector, Sangamo targets unmet medical needs with innovative, potentially curative therapies.

Investment Summary

Sangamo Therapeutics presents a high-risk, high-reward investment opportunity in the genomic medicine space. The company's clinical-stage pipeline, anchored by its ZFP technology, addresses large markets like hemophilia and rare diseases, with potential for transformative therapies. However, significant risks include its negative EPS (-$0.49), cash burn (operating cash flow of -$67.1M), and reliance on successful clinical outcomes. Collaborations with major pharma firms (Pfizer, Biogen) provide validation and funding but dilute upside. The stock's high beta (1.464) reflects volatility typical of biotech firms. Investors should monitor Phase III SB-525 data and partnership milestones closely. With $41.9M in cash and $30.6M debt, Sangamo may need additional financing, posing dilution risk.

Competitive Analysis

Sangamo competes in the genomic medicine sector with a differentiated ZFP platform, offering precise gene editing without viral vectors—a potential safety advantage over CRISPR-based rivals. Its hemophilia A candidate (SB-525) competes with BioMarin's Roctavian (approved in EU) and Pfizer/Spark's gene therapies, though Sangamo's approach may offer durability benefits. In Fabry disease, ST-920 faces Sanofi/AVROBIO's gene therapies. Sangamo's partnerships with Biogen (neurology) and Novartis (cell therapy) provide credibility but also expose it to competition from these collaborators' internal pipelines. The company's niche focus on ZFPs differentiates it but limits scalability versus CRISPR players like CRISPR Therapeutics or Editas. Sangamo's small market cap ($116M) makes it an acquisition target but also limits R&D scale versus larger peers. Its lack of commercialized products contrasts with CRISPR Therapeutics' Casgevy (approved for sickle cell), though Sangamo's pipeline breadth across gene/cell therapy provides diversification. Capital efficiency is a concern given high burn rate and thin cash runway.

Major Competitors

• CRISPR Therapeutics AG (CRSP): CRISPR Therapeutics leads in CRISPR/Cas9 gene editing with Casgevy (approved for sickle cell disease and beta thalassemia), giving it a commercialization edge over Sangamo. Its partnership with Vertex provides robust funding but focuses narrowly on hematology. CRISPR lacks Sangamo's ZFP platform versatility but benefits from broader CRISPR IP and faster editing capabilities. Higher market cap ($4.8B) affords greater R&D scale.
• Editas Medicine, Inc. (EDIT): Editas specializes in CRISPR-based therapies, competing with Sangamo in genetic eye diseases and sickle cell. Its EDIT-101 (Phase I/II for LCA10) trails Sangamo's ocular programs in development stage. Editas has stronger cash reserves but faces IP disputes. Unlike Sangamo's multifunctional ZFPs, Editas relies solely on CRISPR, limiting platform flexibility.
• BioMarin Pharmaceutical Inc. (BMRN): BioMarin dominates hemophilia A with Roctavian (EU-approved gene therapy), directly competing with Sangamo's SB-525. BioMarin's commercial infrastructure and approved products provide revenue stability Sangamo lacks. However, Sangamo's ZFP approach may offer longer-lasting effects. BioMarin's broader rare disease portfolio reduces reliance on hemophilia.
• AVROBIO, Inc. (AVRO): AVROBIO focuses on lentiviral gene therapies for lysosomal disorders like Fabry disease, competing with Sangamo's ST-920. AVROBIO's Phase II Fabry program is more advanced but uses a riskier viral vector approach versus Sangamo's non-viral ZFPs. AVROBIO's smaller cash reserves heighten financing risk compared to Sangamo's pharma partnerships.
• Intellia Therapeutics, Inc. (NTLA): Intellia combines CRISPR with lipid nanoparticles (LNPs) for in vivo editing, competing with Sangamo's ZFP delivery methods. Intellia's NTLA-2001 (Phase III for ATTR amyloidosis) leads in systemic gene editing but lacks Sangamo's cell therapy capabilities. Intellia's $2.3B valuation reflects stronger investor confidence in CRISPR over ZFPs.