Sangamo Rises Further On Sigma-Aldrich Study Plan

NEW YORK (AP) — Shares of Sangamo Biosciences Inc. jumped again Tuesday, as Wall Street appeared optimistic about a partnership between Sangamo and Sigma-Aldrich Corp.

Sigma-Aldrich said Friday it will use technology licensed from Sangamo to develop genetically modified rats for clinical research. An analyst for JMP Securities, Charles Duncan, said the announcement "opens up substantial and underappreciated (by some on Wall Street) revenue opportunities that we believe are not adequately reflected in Sangamo's valuation."

Duncan kept a "Market Outperform" rating on shares of Richmond, Calif.-based Sangamo. He raised his price target to $15 per share from $13. In afternoon trading, Sangamo stock picked up 58 cents, or 9.3 percent, to $6.85. The stock edged up less than 2 percent Friday and climbed another 8.7 percent Monday.

Sigma-Aldrich said it will be able to grow "knockout rats" — rats missing targeted genes, often used in studies — using zinc finger nuclease technology. The technology is designed to turn parts of genes on or off, and the company licensed it from Sangamo in 2007.

St. Louis-based Sigma-Aldrich said its knockout rats and mice could be generated in as little as four months. It said the rats are typically grown from embryonic stem cells and take a year to develop.