Agreements Boost Sangamo Biosci

We are optimistic about Sangamo Biosciences Inc.'s (SGMO - Analyst Report) unique zinc finger DNA-binding protein (ZFP) technology and are encouraged to hear that the company intends to bring more drug candidates into the clinic in 2008.

We are also impressed by the company's strategy to monetize this ZFP technology. Sangamo has signed agreements with Dow AgroSciences (DOW - Analyst Report), Sigma-Aldrich (SIAL - Analyst Report) and Roche to utilize its technology in exchange for financial resources. The company also expanded its agreement with Genentech (DNA) to monetize ZFP.

Sangamo's SB-509 is under three phase II clinical trials for diabetic neuropathy, blocked nerve regeneration, and stem cell mobilization respectively. Another phase II trial of SB-509 for ALS disorder will be initiated soon. The company also plans to initiate two candidates into phase I trials for brain cancer and HIV in the second half of the year.

We maintain our Buy rating on shares of Sangamo based on the platform technology and the progress the company has made for both its clinical and preclinical programs. We believe the ZFP platform technology, combined with the well advanced clinical programs, will attract strategic partners for Sangamo in the coming years. The company's current cash will last through 2010 based on our analysis. Our target price is $18.

Read the full analyst report on SGMO

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Read the full analyst report on DNA

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