Full Press Release Details
SANGAMO THERAPEUTICS REPORTS SECOND QUARTER 2017 FINANCIAL RESULTS
Richmond, California, August 9, 2017 Sangamo Therapeutics, Inc. (NASDAQ: SGMO) today reported its second quarter 2017
financial results and recent accomplishments.
In the second quarter we strengthened our balance sheet in order to position Sangamo for the rapid
development of our therapeutic pipeline, said Dr. Sandy Macrae, CEO of Sangamo. Operationally, we are activating multiple sites across the country for each of our four clinical trials. Patients are being screened and qualified for
enrollment, and we expect to report data from these studies late this year or in the first half of 2018. We are also making progress advancing product candidates in our middle pipeline, which include our wholly owned AAV gene therapy for Fabry
disease and autologous genome edited stem cell treatments for beta-thalassemia and sickle cell disease in partnership with Bioverativ.
Second Quarter 2017 Financial Results
For the second quarter ended June 30, 2017, Sangamo 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. As of June 30, 2017, the Company had cash, cash equivalents, marketable securities and interest receivable of $266.5 million.
Revenues for the second quarter of 2017 were $8.3 million, compared to $3.7 million for the same period
in 2016. Second quarter 2017 revenues were generated from Sangamo s collaboration agreements with Pfizer, Bioverativ, Shire International (Shire) and Sigma-Aldrich, as well as the Company s research grants. The revenues recognized for the
second quarter of 2017 consisted of $8.0 million in collaboration agreements and $0.3 million in research grants, compared to $3.6 million and $0.1 million, respectively, for the same period in 2016.
For the second quarter of 2017, Sangamo recognized $3.1 million of revenues related to research services performed under the collaboration agreement with
Bioverativ. Sangamo received upfront payments of $13.0 million, $20.0 million and $70.0 million pursuant to the agreements entered into with Shire in 2012, Biogen (the predecessor of Bioverativ) in 2014, and Pfizer in May 2017,
respectively. The Shire payment is being recognized as revenue on a straight-line basis through approximately December 2017. Beginning in January 2017, the Biogen agreement was transferred to Bioverativ, and the remaining upfront payment is being
recognized through approximately June 2020. The Pfizer upfront payment is being recognized as revenue on a straight-line basis through approximately December 2019. The Company recognized $0.6 million of the Shire upfront payment,
$0.4 million of the Bioverativ upfront payment, and $3.8 million of the Pfizer upfront payment as revenues for the second quarter of 2017.
Research and development expenses were $15.0 million for the second quarter of 2017, compared to $19.5 million for the same period in 2016. The
decrease was primarily due to the completion of external GMP manufacturing expenses associated with the Company s 2017 clinical studies.
administrative expenses were $6.0 million for the second quarter of 2017, compared to $11.1 million for the same period in 2016. The decrease was primarily due to decreases in stock-based compensation and salaries and benefits, including
those associated with the transition of the Company s former chief executive officer.
Total operating expenses for the second quarter of 2017 were
$21.0 million, compared to $30.5 million for the same period in 2016.
Financial Guidance for 2017
The Company updates guidance as follows:
Sangamo will host a conference call
today, August 9, 2017, at 5:00 p.m. ET, which will be open to the public. The call will also be webcast live and can be accessed via a link on the Sangamo Therapeutics website in the Investors and Media section under Events and
Presentations. A replay of the webcast will also be available for one week after the call. During the conference call, the Company will review these results, discuss other business matters and provide guidance with respect to 2017.
The conference call dial-in numbers are (877) 377-7553 for domestic callers and (678) 894-3968 for international callers. The conference ID number for the call is 54328579. For those unable to listen in at the designated
time, a conference call replay will be available for one week following the conference call, from approximately 8:00 p.m. ET on August 9, 2017 to 11:59 p.m. ET on August 16, 2017. The conference call replay numbers for domestic and
international callers are (855) 859-2056 and (404) 537-3406, respectively. The conference ID number for the replay is 54328579.
About Sangamo Therapeutics
Sangamo Therapeutics, Inc. is
focused on translating ground-breaking science into genomic therapies that transform patients lives using the company s industry leading platform technologies in genome editing, gene therapy, gene regulation and cell therapy. For more
information about Sangamo, visit www.sangamo.com.
This press release contains forward-looking statements regarding Sangamo s current
expectations. These forward looking statements include, without limitation, references to the expected timing of presentation of clinical trial data, the expected accomplishment in 2017, anticipated cash and investment balance, operating expenses,
revenue and potential milestone and royalty payments under Sangamo s agreements with Shire, Bioverativ and Pfizer. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that
are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, the dependence on the success of clinical trials of lead programs, the lengthy and uncertain regulatory approval process, uncertainties
related to the initiation and completion of clinical trials, whether clinical trial results will validate and support the safety and efficacy of Sangamo s therapeutics, and the ability to establish strategic partnerships. Further, there can be
no assurance that the necessary regulatory approvals will be obtained or that Sangamo and its partners will be able to develop commercially viable gene-based therapeutics. Actual results may differ from those projected in forward-looking statements
due to risks and uncertainties that exist in Sangamo s operations and business environments. These risks and uncertainties are described more fully in Sangamo s Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Sangamo undertakes no duty to update
such information except as required under applicable law.
Sangamo Therapeutics, Inc.
(510) 970-6000, x219
SELECTED CONSOLIDATED FINANCIAL DATA
(unaudited; in thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Statement of Operations Data: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Collaboration agreements | $ | 7,977 | $ | 3,592 | $ | 11,283 | $ | 7,303 | ||||||||
| Research grants | 276 | 110 | 395 | 341 | ||||||||||||
| Total revenues | 8,253 | 3,702 | 11,678 | 7,644 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 14,984 | 19,454 | 27,926 | 34,720 | ||||||||||||
| General and administrative | 6,037 | 11,090 | 13,312 | 16,447 | ||||||||||||
| Total operating expenses | 21,021 | 30,544 | 41,238 | 51,167 | ||||||||||||
| Loss from operations | (12,768 | ) | (26,842 | ) | (29,560 | ) | (43,523 | ) | ||||||||
| Interest and other income, net | 277 | 243 | 437 | 430 | ||||||||||||
| Loss before taxes | (12,491 | ) | (26,599 | ) | (29,123 | ) | (43,093 | ) | ||||||||
| Benefit from income taxes | 24 | 24 | ||||||||||||||
| Net loss | $ | (12,491 | ) | $ | (26,575 | ) | $ | (29,123 | ) | $ | (43,069 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.17 | ) | $ | (0.38 | ) | $ | (0.41 | ) | $ | (0.61 | ) | ||||
| Shares used in computing basic and diluted net loss per common share | 72,527 | 70,487 | 71,780 | 70,430 |
SELECTED BALANCE SHEET DATA
| June 30, 2017 | December 31, 2016 | |||||||
| Cash, cash equivalents, marketable securities and interest receivable | $ | 266,510 | $ | 142,759 | ||||
| Total assets | 282,993 | 157,891 | ||||||
| Total stockholders equity | 194,040 | 136,195 |