SGMO hits new highs after rec.
NEW YORK (AP) -- Shares of DNA technology company Sangamo Biosciences Inc. rose Wednesday, a day after Pacific Growth Equities initiated coverage on the company with a "Buy" rating.
The stock rose 82 cents, or 5.3 percent, to $16.37 in midday trading. Shares reached a 52-week high of $16.70 earlier in the trading session, topping a previous peak of $16.40.
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Pacific Growth Equities analyst Liana Moussatos said the company has the potential to produce one or more blockbuster drugs and has a wide patent estate, covering applications in research, medicine and agriculture.
The company focuses on developing drugs using DNA-binding proteins. For drug development, the technology is aimed at treating the genetic root of a condition.
"With a lead clinical candidate which we believe could be a breakthrough treatment for diabetic neuropathy, spinal cord injury and PAD (peripheral artery disease), a potentially 'game-changing' platform, and the potential for financially significant partnerships and M&A, we believe Sangamo is an attractive investment opportunity for smallcap healthcare stock investors," she wrote in a note to investors.
The company's pipeline is being tested in 14 indications, she said, with SB-509 in midstage studies for diabetic neuropathy. The condition is a complication associated with diabetes that causes nerve damage.
"Sangamo has the ability to generate new product candidates in as little as a couple of months," she said.
Picking a top for a true platform company is guesswork. When I first plugged it here last year it was around $5 or $6.
Dave
AI
