Full Press Release Details
SANGAMO THERAPEUTICS REPORTS FOURTH QUARTER AND FULL YEAR 2017 FINANCIAL RESULTS
Company Also Separately Announced Collaboration with Kite, a Gilead Company, to Develop Next-Generation Engineered Cell Therapies for the
Conference Call and Webcast at 8:00 a.m. Eastern Time Today
Richmond, California, February 22, 2018 Sangamo Therapeutics, Inc. (NASDAQ: SGMO) today reported its fourth quarter
and full year 2017 financial results and recent accomplishments.
With two collaboration announcements since the beginning of the year, 2018 is off
to a brisk start, said Sandy Macrae, CEO of Sangamo. This year we continue the important work of laying the foundation for Sangamo as a sustainable, fully integrated company that develops, manufacturers and commercializes novel genomic
therapies on our own and, where appropriate, in collaboration with industry partners. We now have five active clinical programs, with additional preclinical assets advancing toward IND. Perhaps most importantly, we expect to begin reporting data by mid-year from our most advanced clinical trials, SB-525 for hemophilia A and SB-913 for MPS II.
Priorities and Expectations for 2018
Fourth Quarter 2017 Financial Results
For the fourth quarter ended December 31, 2017, Sangamo reported a consolidated net loss of $13.1 million, or $0.15 per share, compared to a net loss
of $9.6 million, or $0.14 per share, for the same period in 2016. As of December 31, 2017, the Company had cash, cash equivalents, marketable securities and interest receivable of $244.6 million.
Revenues for the fourth quarter of 2017 were $13.1 million, compared to $8.9 million for the same period in 2016. The increase in revenues was
primarily related to our hemophilia A collaboration and license agreement with Pfizer. Fourth quarter 2017 revenues were primarily generated from Sangamo s collaboration agreements with Pfizer, Bioverativ and Dow AgroSciences.
Total operating expenses for the fourth quarter of 2017 were $26.8 million, compared to $18.8 million for the same period in 2016. Research and
development expenses were $19.4 million for the fourth quarter of 2017, compared to $13.9 million for the same period in 2016. The increase was primarily due to clinical and manufacturing expenses in support of current clinical studies and
investment in dedicated manufacturing capacity. General and administrative expenses were $7.5 million for the fourth quarter of 2017, compared to $4.9 million for the fourth quarter of 2016. The increase was primarily due to salaries and
related costs and other professional fees in support of overall company growth.
Full Year 2017 Results
For the year ended December 31, 2017, the consolidated net loss was $54.6 million, or $0.70 per share, compared to a consolidated net loss of
$71.7 million, or $1.02 per share, for the year ended December 31, 2016. Revenues were $36.6 million for the year ended December 31, 2017, compared to $19.4 million for the same period in 2016. The increase in revenues was
primarily related to our hemophilia A collaboration and license agreement with Pfizer. Total operating expenses were $92.9 million for the year ended December 31, 2017, compared to $91.9 million for the same period in 2016.
Sangamo will host a conference call today, February 22, 2018, at 8:00 a.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.
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 4392918. 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 11:00 a.m. ET on February 22, 2018 to 11:00 a.m. ET
on March 1, 2018. 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 4392918.
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.
Forward-Looking Statements
contains forward-looking statements regarding Sangamo s current expectations. These forward looking statements include, without limitation, references to the advancement of our preclinical projects toward IND, expected timing of presentation of
preliminary clinical trial data by mid-year for our most advanced clinical trials, SB-525 for hemophilia A and SB913 for MPS II, Initiation of a Phase 1/2 clinical trial
for ST-400 beta thalassemia program in early 2018; filing an IND application for sickle cell disease; filing an IND application for ST-920 for the Fabry disease program;
advancements and improvements to our technology platforms; additional collaborations; the establishment of our new headquarters and the construction of a state-of-the-art cGMP manufacturing facility; and anticipated cash and investment balance, operating expenses, revenue and potential milestone and royalty payments under Sangamo s collaboration
agreements. 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, the reliance on partners and other third-parties to meet their obligations, 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 Report 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
(510) 970-6000, x205
SELECTED CONSOLIDATED FINANCIAL DATA
(unaudited; in thousands, except per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Statement of Operations Data: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Collaboration agreements | $ | 12,918 | $ | 8,850 | $ | 35,960 | $ | 18,881 | ||||||||
| Research grants | 159 | 72 | 607 | 508 | ||||||||||||
| Total revenues | 13,077 | 8,922 | 36,567 | 19,389 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 19,377 | 13,890 | 65,728 | 65,618 | ||||||||||||
| General and administrative | 7,466 | 4,862 | 27,200 | 26,330 | ||||||||||||
| Total operating expenses | 26,843 | 18,752 | 92,928 | 91,948 | ||||||||||||
| Loss from operations | (13,766 | ) | (9,830 | ) | (56,361 | ) | (72,559 | ) | ||||||||
| Interest and other income, net | 675 | 219 | 1,793 | 887 | ||||||||||||
| Loss before taxes | (13,091 | ) | (9,611 | ) | (54,568 | ) | (71,672 | ) | ||||||||
| Benefit (provision) from income taxes | (13 | ) | 14 | |||||||||||||
| Net loss | $ | (13,091 | ) | $ | (9,624 | ) | $ | (54,568 | ) | $ | (71,658 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.70 | ) | $ | (1.02 | ) | ||||
| Shares used in computing basic and diluted net loss per common share | 84,820 | 70,730 | 78,084 | 70,553 |
SELECTED BALANCE SHEET DATA
| December 31, 2017 | December 31, 2016 | |||||||
| Cash, cash equivalents, marketable securities and interest receivable | $ | 244,560 | $ | 142,759 | ||||
| Total assets | 286,741 | 157,891 | ||||||
| Total stockholders equity | 187,900 | 136,195 |