Back to top

Analyst Blog

Sangamo BioSciences, Inc. (SGMO - Snapshot Report) recently announced that it has entered into an agreement to acquire privately-held biotech company Ceregene, Inc.

As per the terms of the acquisition, Sangamo will issue 100,000 shares to the stockholders of Ceregene, representing less than 0.2% of total outstanding shares. Additionally, Sangamo will make milestone payments.

The acquisition is expected to close in Sep 2013 and Sanagmo does not expect the acquisition to impact its financial guidance of operating expenses and cash in 2013.

Ceregene focuses on developing adeno-associated virus (AAV) gene therapies. Sangamo will acquire all of Ceregene’s AAV assets, which includes a phase II candidate, CERE-110, being developed for the treatment of Alzheimer's disease.

The acquisition will provide Sangamo with more than 120 issued, pending or in-licensed patents along with other technical knowhow.

Sangamo expects the technical knowhow acquired from Ceregene to provide important reference materials to the company in the preparation and filing of Investigational New Drug (IND) applications for its novel ZFP Therapeutics. We note that Sangamo is evaluating the safety and efficacy of a novel ZFP Therapeutic for the treatment of HIV/AIDS.

We remind investors that Sangamo is also developing therapeutics for hemophilia, Huntington's disease and other monogenic diseases.

Sangamo currently carries a Zacks Rank #2 (Buy). Other stock that looks attractive is Biogen Idec Inc. (BIIB - Analyst Report) with a Zacks Rank #1 (Strong Buy).

Another acquisition agreement announced recently is that of Amgen (AMGN - Analyst Report) and Onyx Pharmaceuticals, Inc. under which Amgen will acquire Onyx Pharma for $125 per share in cash or $10.4 billion.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%