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Sangamo Therapeutics Reports Third Quarter 2019 Financial Results

November 6, 2019

BRISBANE, Calif.--(BUSINESS WIRE)--Nov 6, 2019--

Sangamo Therapeutics, Inc. (NASDAQ: SGMO), a genomic medicine company, today reported third quarter 2019 financial results and recent business highlights.

“We continue to prioritize and progress our clinical development programs, as demonstrated by the accepted ASH poster presentations for our two most advanced programs, SB-525 hemophilia A gene therapy and ST-400 beta thalassemia cell therapy. Patients are currently being screened for enrollment into the clinical study evaluating ST-920, our wholly owned Fabry disease gene therapy, and we expect to enroll a first patient by the end of the year. We have also recently submitted a CTA for the clinical trial of our CAR-Treg, TX200, in mismatched renal transplantation,” said Sandy Macrae, CEO of Sangamo. “As it is important that we continue to articulate our drug development, research, and partnership strategies, we will host a Sangamo R&D day in New York on December 17, 2019. At this meeting, we will provide updates across our various genomic medicine programs, offer our perspective on the clinical data at ASH, share improvements across our technology platforms, and provide an overview of the manufacturing strategy to support our clinical and commercial supply.”

Recent Highlights

Clinical

Corporate

Third Quarter 2019 Financial Results

For the third quarter ended September 30, 2019, Sangamo reported a consolidated net loss of $27.3 million, or $0.24 per share, compared to a net loss of $12.8 million, or $0.13 per share, for the same period in 2018. As of September 30, 2019, the Company had cash, cash equivalents, and investments of $408.3 million.

Revenues for the third quarter ended September 30, 2019 were $22.0 million, compared to $23.6 million for the same period in 2018. The decrease of $1.6 million was primarily driven by the decrease of $7.0 million in revenues related to Pfizer and $1.4 million related to royalty revenues offset by increases of $6.5 million in revenues related to Sanofi as the Company achieved a $6.0 million milestone upon dosing the third subject in the Phase 1/2 THALES study in August 2019.

As anticipated, operating expenses increased in the third quarter, reflecting the Company’s growth through increased U.S. headcount in support of growth of the clinical development programs and preclinical pipeline, and manufacturing-readiness activities. Total operating expenses for the third quarter ended September 30, 2019 were $51.2 million, compared to $39.8 million for the same period in 2018. Research and development expenses were $36.3 million for the third quarter of 2019, compared to $28.8 million for the same period in 2018. The increase is primarily due to higher compensation costs from headcount growth, higher facility expenses related to our new Brisbane facility, and higher manufacturing expenses related to our clinical activities. General and administrative expenses were $14.9 million for the third quarter of 2019, compared to $11.0 million for the same period in 2018. The increase was primarily due to increased compensation costs due to headcount growth and increased facility expenses. Construction of our in-house manufacturing capability in Brisbane is proceeding on schedule, and we still expect to commence Good Manufacturing Practice (GMP) qualification procedures early next year.

Financial Guidance for 2019

Conference Call

Sangamo will host a conference call today, November 6, 2019, at 5:00 p.m. Eastern Time, 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.

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 7276749. A conference call replay will be available for one week following the conference call. 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 7276749.

About Sangamo Therapeutics

Sangamo Therapeutics, Inc. is focused on translating ground-breaking science into genomic medicines with the potential to transform patients’ lives using gene therapy, ex vivo gene-edited cell therapy, in vivo genome editing, and gene regulation. For more information about Sangamo, visit www.sangamo.com.

Forward-Looking Statements

This press release contains forward-looking statements regarding Sangamo’s current expectations. These forward-looking statements include, without limitation, statements regarding the Company’s ability to develop and commercialize product candidates to address genetic diseases with the Company’s proprietary technologies; the timing of commencement or next stages of such programs and the anticipated benefits therefrom; and Sangamo’s 2019 financial guidance related to cash, cash equivalents, and investments, anticipated operating expenses and cash runway. 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 outcomes of clinical trials, the uncertain regulatory approval process, uncertainties related to the execution of clinical trials, uncertainties that research outcomes will support clinical programs, Sangamo’s reliance on partners and other third-parties to meet their clinical and manufacturing obligations, and the ability to maintain strategic partnerships. 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 for the year ended December 31, 2018 as filed with the Securities and Exchange Commission on March 1, 2019 and Sangamo’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 that it filed on or about November 6, 2019. 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.

 
SELECTED CONSOLIDATED FINANCIAL DATA
(unaudited; in thousands, except per share data)
 
 
Statement of Operations Data:

Three months ended

 

For the Nine Months Ended

September 30,

 

September 30,

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

 
Revenues

$

21,958

 

$

23,562

 

$

47,577

 

$

57,615

 

Operating expenses:
Research and development

 

36,288

 

 

28,810

 

 

107,593

 

 

81,612

 

General and administrative

 

14,918

 

 

10,993

 

 

46,633

 

 

32,381

 

Total operating expenses

 

51,206

 

 

39,803

 

 

154,226

 

 

113,993

 

Loss from operations

 

(29,248

)

 

(16,241

)

 

(106,649

)

 

(56,378

)

Interest and other income, net

 

1,887

 

 

3,398

 

 

6,729

 

 

6,708

 

Net loss

 

(27,361

)

 

(12,843

)

 

(99,920

)

 

(49,670

)

Net loss attributable to non-controlling interests

 

(54

)

 

-

 

 

(179

)

 

-

 

Net loss attributable to Sangamo Therapeutics, Inc. stockholders

$

(27,307

)

$

(12,843

)

$

(99,741

)

$

(49,670

)

Basic and diluted net loss per common share attributable to Sangamo Therapeutics Inc. stockholders

$

(0.24

)

$

(0.13

)

$

(0.90

)

$

(0.52

)

Shares used in computing basic and diluted net loss per common share attributable to Sangamo Therapeutics, Inc. stockholders

 

115,710

 

 

101,725

 

 

110,837

 

 

95,165

 

 
 
 
Balance Sheet Data:
September 30, 2019December 31, 2018
 
Cash, cash equivalents, marketable securities and interest receivable

$

408,321

 

$

400,508

 

Total assets

 

640,222

 

 

590,395

 

Total stockholders' equity

 

419,328

 

 

367,257

 

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191106005882/en/

CONTACT: Investor Relations – Global

McDavid Stilwell

510-970-6000, x219

mstilwell@sangamo.comMedia Inquiries – Global

Aron Feingold

510-970-6000, x421

afeingold@sangamo.com Investor Relations and Media Inquiries – European Union & United Kingdom

Caroline Courme

33 4 97 21 27 27

ccourme@sangamo.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: PHARMACEUTICAL GENETICS HEALTH CLINICAL TRIALS

SOURCE: Sangamo Therapeutics, Inc.

Copyright Business Wire 2019.

PUB: 11/06/2019 04:01 PM/DISC: 11/06/2019 04:01 PM

http://www.businesswire.com/news/home/20191106005882/en