There is little doubt that Sangamo is a higher risk spec investment. That risk can be seen in the pipeline which is leveraged to unproven approaches: Gene regulation and Allo Treg cell therapy. The pipeline is a multiplier of that risk/reward.
Sangamo has by far the largest pipeline partially tied to collab partners with the majority of the programs in the higher risk category with either no in human dosing (ZFP-TF) or just initiated with no data yet to digest (Tregs)
18 of 23 programs in Sangamo pipeline are these two approaches
- Gene Regulation 13 preclinical programs (4 owned/9 partnered)
- Tregs 1 clinic/4 preclinic all owned
The bull/bear thesis therefore hinges on these programs. Little valuation support exists today because they are in fact unproven and very early stage. Even so, any bad data on TX200 will undoubtedly have a serious negative reaction. Just as importantly, Tau as the lead ZFP-TF program is not comforting as the ALZ tau thesis isn't too far from amyloid which has been very disappointing.
The inverse is also true. Any success, especially compelling data, would have a multiple effect on valuation given the pipeline leverage with so many follow on programs.
Everyone needs to draw their own speculative line in the sand and decide whether they want to roll the dice while acknowledging the downside risk.
NTLA is a useful guide as their valuation on good in vivo data rocked. Their price which dipped below $10 in Mar 2020 ran to about $180 18 months later.
Pipelines of other platform companies
- BEAM 5 clinical/preclinical programs: 1 clinical to enroll 2H22. Second IND on FDA hold.
- CRSP 10 clinical/preclinical programs. Success in SCD provides strong valuation support for entire pipeline. Just terminated one
- EDIT 9 programs
- NTLA 3 clinical/1 preclinical programs. Just pivoted one from clinic (auto) to preclinic (allo)
Time will tell but as a speculative sliver of a portfolio, SGMO remains quite interesting