Sangamo Plunges After Pfizer Ends Pact for Hemophilia Treatment

Sangamo Therapeutics, Inc. (SGMO) stock took a significant hit on Monday, December 30, 2024, following Pfizer's decision to terminate their collaboration and license agreement for the development and commercialization of giroctocogene fitelparvovec, an investigational gene therapy for hemophilia A. Sangamo's stock price fell by 9% after markets closed, reflecting investor disappointment and uncertainty about the future of the therapy.

Pfizer's decision to end the collaboration came close to the anticipated Biologics License Application (BLA) and Marketing Authorisation Application (MAA) submissions, which were expected to occur in early 2025. The termination of the agreement means that Pfizer will no longer pursue regulatory approval or commercialization of the therapy. Sangamo, however, has regained the rights to develop and commercialize the therapy and plans to explore options to advance the program, including seeking a potential new collaboration partner.



Sangamo's Chief Executive Officer, Sandy Macrae, expressed surprise and disappointment at Pfizer's decision, stating, "While we were surprised and extremely disappointed by Pfizer's decision to end our collaboration so close to the anticipated BLA and MAA submissions, especially given the compelling pivotal clinical trial data, we appreciate their collaboration in leading a robust and successful clinical development program and for advancing the asset to this important stage."

Giroctocogene fitelparvovec demonstrated positive results in a Phase 3 trial, meeting primary and secondary endpoints. The therapy showed potential to be a life-changing treatment for hemophilia A patients, and Sangamo believes it is well-positioned for regulatory submissions and potential commercialization. The termination of the collaboration with Pfizer may lead to delays in the therapy's approval and market availability, as Sangamo seeks a new collaboration partner and works through the transition process.

The termination of the collaboration with Pfizer has a significant impact on Sangamo's financial projections and valuation. The company was expecting to generate revenue and profit from the commercialization of the therapy, which is now uncertain. Sangamo's stock price decline reflects investor concerns about the company's future prospects without Pfizer's support. Additionally, Sangamo may incur additional costs as it explores options to advance the therapy, including seeking a new collaboration partner.

Sangamo faces potential challenges in seeking a new collaboration partner or commercializing the therapy independently, including timing, financial resources, market competition, and transition period. However, the company also has opportunities, such as positive clinical trial results, potential new collaboration partners, a diversified pipeline, and regulatory support. By effectively navigating these challenges and leveraging these opportunities, Sangamo can position itself for success in bringing giroctocogene fitelparvovec to market.

In conclusion, Sangamo Therapeutics' stock price has been negatively impacted by Pfizer's decision to terminate their collaboration and license agreement for the hemophilia A treatment, giroctocogene fitelparvovec. The termination of the agreement means that Pfizer will no longer pursue regulatory approval or commercialization of the therapy, leading to uncertainty about the therapy's future and a decline in Sangamo's stock price. Sangamo has regained the rights to develop and commercialize the therapy and plans to explore options to advance the program, including seeking a new collaboration partner. The company faces potential challenges and opportunities in seeking a new collaboration partner or commercializing the therapy independently, which will influence its stock price recovery.