Pfizer Inc. unexpectedly terminates hemophilia agreement, Sangamo (SGMO.US) stock price plunges over 69% after hours.

After the American pharmaceutical giant Pfizer Inc. (PFE.US) unexpectedly terminated its collaboration on the development of a new gene therapy for treating hemophilia A, Sangamo Therapeutics (SGMO.US) saw its stock price plummet over 69% in after-hours trading in the US stock market, dropping over 58% by the time of writing. According to a statement released by Sangamo on Monday Eastern Time, the company is considering "all options" to continue the development and commercialization of this new drug, including seeking new partners. The experimental drug met its primary goal in a very critical late-stage trial, Sangamo said, with Pfizer Inc. previously stating that it expected to submit an approval application to US and European regulatory agencies in early 2025. "We are very surprised and disappointed by Pfizer Inc.'s sudden change of heart," said Sangamo CEO Sandy Macrae in a phone interview. He stated that the company learned of this decision around December 22nd. Sangamo has been facing liquidity issues. According to Macrae, the company should have received milestone payments of up to $220 million under the agreement for this drug, called giroctocogene fitelparvovec. Prior to the news from Pfizer Inc., the company's market value was slightly less than $500 million. Hemophilia A makes individuals more prone to bleeding and typically requires lifelong medication. According to a research report from market research firm TD Cowen, there are at least a dozen approved treatment options. However, another gene therapy for hemophilia A developed by competitor BioMarin Pharmaceutical Inc. has been disappointing in terms of its commercial model. In an email statement, Pfizer Inc. said that after careful consideration and analysis, the company believes that "there is very limited interest from the patient community for additional gene therapy options at this time." In after-hours trading on the New York stock market, Pfizer Inc.'s stock price remained relatively stable. Due to a significant decrease in sales of products related to COVID-19 treatments and vaccines, the company has been seeking new avenues for revenue generation. Public information shows that Sangamo Therapeutics, Inc. is a biopharmaceutical company based in California, USA, focusing on areas such as gene editing, gene transfer, and cell therapy. The company utilizes its advanced biotechnology platform, particularly the "zinc finger nuclease (ZFN)" technology, to develop innovative therapies for genetic diseases, cancer, immune system disorders, etc. Sangamo's biotechnology platform includes key technologies such as gene editing and gene transfer through AAV viral vectors, aiming to treat a range of rare diseases, including hemophilia, sickle cell anemia, -thalassemia, neurodegenerative diseases, and more.