When small-cap biotech stocks go on a tear, many investors pay attention. Little-known company Sangamo Therapeutics (NASDAQ:SGMO) is making waves today, with SGMO stock up more than 40% at the time of this writing.
This move comes after the clinical-stage genomics company announced a successful late-stage trial for its drug targeting a rare genetic bleeding disorder.
This particular drug will be developed in collaboration with Pfizer (NYSE:PFE), providing the clout and attention the company is clearly seeing today. Investors are clearly hopeful this trend will continue, with Sangamo likely to disproportionately benefit from any successful potential approval from the U.S. Food and Drug Administration.
Let’s dive into what to make of this announcement and where Sangamo could be headed from here.
SGMO Stock Surges on Successful Late-Stage Trial
For clinical-stage biotech companies like Sangamo, late-stage trial results matter a great deal. Investors wondering whether there’s a pathway to future profitability often have to wait years for a company like Sangamo to get to the late stages of trials, let alone potentially have a drug approved by the FDA.
These results do appear to be promising, with patients suffering from hemophilia A seeing impressive results from the company’s gene and cell therapies. Hemophilia A is a life-long disease which impacts blood-clotting proteins, increasing the risk of severe bleeding in certain instances, such as surgery. If this treatment is successful in getting approved, it’s possible Sangamo could have a life-changing treatment on its hands.
We’ll have to see how this particular treatment progresses and what the industry feedback is on it, with additional data expected to be released at future medical conferences. Today, SGMO stock is one I’ve added to the watch list, due to this promising news.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
