Wednesday May 2, 10:15 am ET
Sangamo Biosciences Rises After Analyst Upgrade Due to Pending Diabetes Drug Data
NEW YORK (AP) -- Shares of gene-based therapy developer Sangamo Biosciences Inc. rose Wednesday after a JMP Securities analyst upgraded the company, saying he is more confident of the success of its diabetic neuropathy treatment.
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The company reported its first-quarter loss doubled and was greater than analysts expected, but analyst Charles C. Duncan said investors consider the company's corporate developments and clinical trial results more important than its financial data.
Duncan said he expects the company to report good news about its drug candidate SB-509 at the American Diabetes Association meeting next month. He upgraded shares to "Strong Buy" from "Market Outperform," and held his $15 price target. SB-509 is in phase II testing.
The company is developing zinc finger protein therapies for cancer, heart disease and failure, cancer and other illnesses.
All six analysts reporting to Thomson Financial rate Sangamo shares at "Buy" or the equivalent.
After the markets closed Tuesday, Richmond, Calif.-based Sangamo said its first quarter loss swelled to $5.4 million, or 15 cents per share, from $2.7 million, or 9 cents per share, in the first quarter of 2006. Revenue decreased 33 percent, to $1.4 million from $2.1 million.
Analysts expected Sangamo to lose 13 cents per share and take in $2.4 million in revenue.
Sangamo shares gained 20 cents, or 2.8 percent, to $7.35 in morning trading on the Nasdaq Stock Market. |
