Pfizer (PFE) Collaborates With Sangamo For Gene Therapy

Pfizer Inc. (NYSE:PFE) announced a collaboration with Sangamo Therapeutics Inc. (NASDAQ:SGMO) to develop a gene therapy using the latter’s zinc finger protein transcription factors (ZFP-TFs) platform. The gene therapy will be developed to treat neurodegenerative disorders — amyotrophic lateral sclerosis (ALS) and frontotemporal lobar degeneration (FTLD) — caused by mutations in the C9ORF72.

Per the agreement, Sangamo will receive a $12 million upfront payment from Pfizer and will be responsible for the development of ZFP-TF candidates. Additionally, Sangamo will also receive milestone payments of up to $150 million as well as tiered royalties on net sales. Meanwhile, Pfizer will be responsible operationally and financially for the development and commercialization of any resulting products.

Pfizer and Sangamo already have a global collaboration and license agreement for the development and commercialization of potential gene therapy products to treat hemophilia A, including SB-525, which entered the clinic in August 2017.

In 2017, shares of Pfizer increased 10.3% compared with the industry’s gain of 16.5%. Also, Sangamo skyrocketed 397.1% compared with the industry’s gain of 4.3% in the same time frame.

Pfizer also inked a deal with a private biotechnology company — Arvinas — for the discovery and development of drug candidates using Arvinas' proprietary, PROTAC (PROteolysis TArgeting Chimeras) platform. These candidates will be designed to degrade several key disease-causing proteins in multiple therapeutic areas.

According to the latestdeal, Arvinas may receive up to $830 million in upfront payment on achieving some specified preclinical, clinical and commercial milestones. Pfizer will be responsible for clinical development and commercialization of any products that result from the deal. Arvinas may be entitled to receive tiered royalties based on global product sales on any products that may result from this collaboration.

Pfizer, Inc. Price

Zacks Rank & Stocks to Consider

Pfizer carries a Zacks Rank #3 (Hold). Some better-ranked health care stocks are Exelixis, Inc. (NASDAQ:EXEL) and XOMA Corporation (NASDAQ:XOMA) both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Exelixis’earnings per share estimates have moved up from 46 cents to 49 cents for 2017 and from 70 cents to 73 cents for 2018 in the last 60 days. The company delivered a positive earnings surprise in all the last four quarters, with an average beat of 572.92%. Share price of the company has surged 107.5% in 2017.

XOMA’s loss per share estimates have narrowed from $3.05 to 9 cents for 2017 and from $1.23 to 42 cents for 2018 in the last 60 days. The company delivered a positive earnings surprise in one of the last four quarters, with an average beat of 47.92%. Share price of the company has surged 643.8% in 2017.

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