Sangamo Biosciences, Smart Emerging Growth Option in the Medical Research Sector

Sangamo Biosciences (NASDAQ: SGMO) has grown through strategic partnerships with companies such as Dow Chemical Corporation (NYSE: DOW) and others while margins have remained attractive compared to companies like Amgen, Inc. (NASDAQ: AMGN)

With the unprecedented global surge in diseases such as HIV/AIDS, medical science is constantly searching for cures, or at the very least, palliative solutions. It is primarily in the biosciences sector of the market that companies are engaged in this type of research. A few of the companies command attention, and Sangamo Biosciences (NASDAQ: SGMO) is among them. The company has just announced its fourth quarter and 2012 full-year results and the numbers look pretty decent.

Sangamo Biosciences had a good outing in 2012 and its fourth quarter numbers reflect this. The stock grew by around 45 percent over the past year driven, in part, by the increase in its collaborative agreements. Revenues for fourth quarter 2012 were $8.9 million. This was up from $4.7 million the company posted in the same quarter in 2011. Revenues grew through the company's strategic partnerships with Shire PLC, Dow Chemical Corporation's (NASDAQ: DOW) AgroSciences segment, Sigma-Aldrich Corporation and other research grants. Total operating expenses were $43.9 million for 2012 versus $46.1 million in 2011. Sangamo Biosciences has a market capitalization of around $480 million and shares are trading at $9.05 as of today's market, very near to its 52-week high of $10.05. And if you need more encouragement to put the company on your watch list, it has a gross margin of 1.00, which is above the industry average. It is also attractive compared to the figures of some of its larger competitors. For instance, Amgen Inc (NASDAQ: AMGN) has a gross margin of 0.84 while Eli Lilly and Company has a gross margin of 0.79.

The company has high hopes for the future. It projects that its cash, cash equivalents, and marketable securities will reach $55 million by the end of 2013. Sangamo expects that revenues will be in the range of $20 to $24 million this year, inclusive of research funding from Shire. The company also expects that operating expenses will be in the range of $46 to $50 million for 2013.

Sangamo Biosciences focuses on developing proteins for gene regulation and genome editing. For instance, it is currently evaluating the possibility of using therapeutic gene regulation for the management of illnesses such as HIV/AIDS, hemophilia, and sickle cell anemia. Sangamo's technique entails manipulating DNA-binding proteins for gene modification. The process promotes gene expression and controls cell function. Management is excited by progress of the company's ZFP Therapeutics in the treatment of diseases. Data was presented at the American Society of Hematology meeting showing the successful use of its protein replacement platform. Sangmo also demonstrated that its gene regulation techniques can repress the form causing the huntingtin gene (HTT) which is associated with Huntington's disease.

The company is actively establishing working partnerships with firms that are interested in the non-therapeutic use of its technology. This explains its partnership with Dow AgroSciences and Sigma-Aldrich Corporation. As a result of the progress the company made in 2012, it was put on the Russell Best Performing Stock list. Sangmo does bear watching over the next few quarters. It may prove very profitable in the long-run.


NEW: Feature your company on Find out how by filling out our referral form here




By offering 100% original and unmatched content by the best financial reporters, writers and bloggers in the business, is emerging as a leading digital financial media portal. Its services provide users, subscribers and advertisers with a variety of content and tools through a range of online, social media, mobile and other mobile outlets.


Since its inception, has distinguished itself from other financial media companies with its sly approach to reading between the lines in order to locate that needle in the haystack. Sign up today to see what has to offer.



Join our Linked in Group


Like us on Facebook...



All information contained herein as well as on the website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. All material is for informational purposes only, is only the opinion of and should not be construed as an offer or solicitation to buy or sell securities. In addition, Please make sure you read and understand the Terms of Use, Privacy Policy and the Disclosure posted on the website. Always remember that investing in securities such as the ones listed within are for high-risk tolerant individuals only and not the general public. Whether you are an experienced investor or not, you should always consult with a stockbroker, financial advisor, or similar before purchasing or selling any securities viewed on any emails sent from or its website.




Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here