Top Pick of the Day: SGMO

Sangamo Therapeutics (SGMO) shot up as the company announced better than expected quarterly numbers. For the second quarter ended June 30, 2017, the company reported a consolidated net loss of $12.5 million, or $0.17 per share, compared to a net loss of $26.6 million, or $0.38 per share, for the same period in 2016. Its revenue for the quarter was $8.3 million, compared to $3.7 million for the same period in 2016. The figure included proceeds from its collaboration agreements with Pfizer, Bioverativ, Shire International (Shire) and Sigma-Aldrich and research grants.

The stock reacted positively to the news and jumped over 10 percent in its previous trading session. The company stock gained over 208 percent this year so far.

Focus Ticker: GLPG

Galapagos NV (GLPG) stock jumped up as the company reported positive results from a Phase 2a clinical trial assessing GLPG1690 for the treatment of patients with idiopathic pulmonary fibrosis. GLPG1690 is a small molecule inhibitor of autotaxin, an enzyme that is up-regulated in many inflammatory conditions, including fibrosis while IPF is a progressive disorder that typically strikes adults over the age of 40. After 12 weeks of treatment, patients receiving once-daily GLPG1690 showed an average increase from baseline in forced vital capacity (FVC) of 8 mL compared to a drop of 87 mL for placebo.

The stock gained over 10 percent in its previous trading session, taking its 12 months gain to over 52 percent.

Sector News

Apollo Endosurgery (APEN) stock slumped as the FDA issued an alert related to unexpected deaths in patients with liquid-filled intragastric balloon systems used to treat obesity. Out of total five deaths reported, four are attributed to Apollo's Orbera Intragastric Balloon System and one to ReShape Medical's Reshape Integrated Dual Balloon System.

Applied Genetic Technologies (AGTC) reported filing an Investigational New Drug (IND) application with the FDA. The application seeks approval to launch a Phase 1/2 clinical trial assessing its RPGR gene therapy candidate for the treatment of X-linked retinitis pigmentosa.

Deals and Collaborations

Celgene (CELG) announced modifying its collaboration with Sutro. Under the new terms, the company is entitled to acquire global rights to the second program to reach IND status by making unspecified payments to Sutro. For the next two programs, Sutro will retain exclusive U.S. rights while Celgene will retain exclusive ex-U.S. rights.

Perrigo inked an agreement with private investment shop SK Capital to sell it the Active Pharmaceutical Ingredients (API) unit. The parties to the agreement did not announce the financial terms.

Earnings

Aethlon Medical (AEMD) reported that its  net loss for the June 2017 quarter was $1.8 million, or $0.21 per share, compared to a net loss for the June 2016 quarter of $2.1 million, or $0.28 per share. The company’s consolidated operating expenses were $1.16 million in the June 2017 quarter compared to $1.14 million in the June 2016 quarter, an increase of approximately $20,000.

Sophiris Bio (SPHS) reported net income of $0.6 million or $0.02 per share for the three months ended June 30, 2017 compared to a net loss of $4.1 million or ($0.21 per share) for the three months ended June 30, 2016. Its Research and development expenses were $1.4 million for the three months ended June 30, 2017, compared to $1.0 million for the three months ended June 30, 2016.