Biotech Blow: Sangamo Therapeutics Shares Plummet After Pfizer Exits Collaboration
The biotech world was left reeling on Tuesday as Sangamo Therapeutics (SGMO) shares took a drastic hit, plummeting over 50% in a single day. The sudden downturn came on the heels of Pfizer’s (PFE) decision to terminate its collaboration agreement with Sangamo, effectively ending their joint effort to develop a groundbreaking hemophilia treatment.
A Promising Treatment in Jeopardy
At the center of the controversy is giroctocogene fitelparvovec, an investigational gene therapy designed to combat moderately severe to severe hemophilia A in adults. Despite reporting a successful Phase 3 trial in July, Pfizer has opted to pull the plug on the project, leaving Sangamo to pick up the pieces.
Regaining Control, But at What Cost?
As a result of Pfizer’s exit, Sangamo will regain development and commercialization rights to giroctocogene fitelparvovec. While this may seem like a silver lining, the company’s CEO, Sandy Macrae, expressed disappointment at Pfizer’s decision, citing the treatment’s potential for regulatory submissions and commercialization.
Seeking a New Partner
Sangamo has announced its intention to explore all options to advance the program, including seeking a new collaboration partner. This move may be a necessity, given the significant blow dealt to the company’s shares. Despite the setback, Sangamo’s stock remains over 100% higher year-to-date.
Pfizer Shares Unfazed
In contrast, Pfizer’s shares traded slightly higher, seemingly unaffected by the termination of the collaboration agreement. As the biotech landscape continues to shift, one thing is clear: Sangamo Therapeutics faces an uncertain future, and its ability to find a new partner will be crucial to the success of its promising hemophilia treatment.
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