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After showing that Pfizer (NYSE:PFE) has halted its cooperation to develop giroctocogene fitelparvovec, an experimental gene therapy for hemophilia A in adults, Sangamo Therapeutics (NASDAQ:SGMO) shares fell over 50% on Tuesday. Sangamo will recover complete development and commercialization rights for the medicine after the decision. Sangamo CEO Sandy Macrae pointed out that Pfizer had revealed positive findings from a Phase 3 study in July, implying the medication is "well-positioned for regulatory filings and potential commercialization." Macrae expressed dissatisfaction and said the business intends to "explore all options to advance the program," including looking at a new collaborative partner.
Sangamo shares remain more than 90% higher year-to-date despite the massive drop; Pfizer shares went somewhat higher during the session. Moreover, Sangamo stock is up a whopping 191% in the past six months alone, leaving broader market gains in the dust. However, the recent development is likely to have a long-term impact on the stock's price as we move into the new year.
This article first appeared on GuruFocus.