BTIG starts Sigilon Therapeutics at buy; PT $14

Sigilon Therapeutics

BTIG launched coverage of Sigilon Therapeutics (NASDAQ:SGTX) with a “buy” rating and price target of $14. The stock closed at $5.38 on Oct. 28.

Sigilon is developing shielded living therapeutics (SLTs) as a “functional cure” for genetic diseases, writes analyst Thomas Shrader, Ph.D. The key technology is based on a triplet of innovations that improve the function and survival of polymer-encapsulated engineered cells.

Dr. Shrader said that the resultant cell clusters are protected from the patient’s immune system, allowing them to function as intelligent protein production factories in patients deficient for essential enzymes and other biomolecules.

“The SLT approach represents a potential replacement for most current protein replacement therapies,” he said. And based on the ability of cells to decode a patient’s metabolic state, “ SLTs are also applicable to more sophisticated applications,” such as insulin replacement in response to a patient’s elevated glucose levels.

Lead programs include lysosomal storage disorders, autoimmune or Type 1 diabetes, and hemophilia A and B.

Dr. Shrader said clinical data are beginning to be released in HemA and higher dose cohorts are expected in fourth quarter of 2021. Key readouts include the level and stability of clotting factor replacement and initial reads on the durability of treatments, he added.

Dr. Shrader also noted that the biggest issue in the current Sigilon story is the clinical hold that has frozen enrollment in the lead program SIG-001 in hemophilia A. The hold was based on the development of inhibitors to factor 8 in a hemophilia patient. “Signs are that the hold is being resolved and about 40% of hemophilia patients develop inhibitors,” he added.