Conference Call and Webcast Scheduled for 5:00
p.m. Eastern Time
Sangamo Therapeutics, Inc. (Nasdaq: SGMO), a genomic medicine
company, today reported second quarter 2020 financial results and
recent business highlights.
“We are very excited about our global collaboration agreement
announced with Novartis last week. This is our second impactful
partnership announced this year, and we believe it affirms the
value our industry sees in our zinc finger technology,” said Sandy
Macrae, CEO of Sangamo. “By advancing our robust partnership
strategy, we proactively expand our genomic medicines pipeline into
potential additional new indications, create substantial value for
shareholders, and advance our mission to bring our medicines to
patients.”
Recent Highlights
- Announced global collaboration agreement with Novartis to
develop and commercialize gene regulation therapies to treat three
neurodevelopmental targets, including genes linked to autism
spectrum disorder and intellectual disability. Under the
collaboration agreement, Sangamo expects to receive a $75 million
upfront licensing fee from Novartis in the third quarter of 2020
and is eligible to earn up to $720 million in potential milestones,
in addition to tiered high single-digit to sub-teen double-digit
royalties on potential net commercial sales.
- In partnership with Pfizer, presented updated results from the
Phase 1/2 Alta study evaluating giroctocogene fitelparvovec, or
SB-525, gene therapy in patients with severe hemophilia A at the
virtual World Federation of Hemophilia 2020 Congress. The results
demonstrated sustained Factor VIII activity levels and no bleeding
events or factor usage in the five patients who received the 3e13
vg/kg dose for up to 61 weeks, the extent of follow-up for the
longest-treated patient in the cohort.
- Highlighted Sangamo’s zinc finger protein in vivo genome
regulation programs and capabilities and research detailing
Sangamo’s engineered adeno-associated virus (AAV) directed
evolution platform in six abstracts presented at the 23rd Annual
Meeting of the American Society of Gene & Cell Therapy
(ASGCT).
- Announced organizational changes in R&D designed to
increase the speed and efficiency of clinical translation of
Sangamo science, including separating the research and development
organizations. Jason Fontenot, Senior Vice President and Head of
Cell Therapy, was appointed Interim Head of Research, and a search
for Head of Development is currently underway.
Second Quarter 2020 Financial Results
Cash, cash equivalents and marketable securities were $664.9
million as of June 30, 2020, compared to $384.3 million as of
December 31, 2019. The balance at the end of the second quarter
reflects amounts received from our previously announced
collaboration with Biogen for an upfront license fee and issuance
of Sangamo common stock.
Consolidated net loss attributable to Sangamo for the second
quarter ended June 30, 2020 was $35.9 million, or $0.26 per share,
compared to a net loss of $30.3 million, or $0.26 per share, for
the same period in 2019. Revenues for the second quarter ended June
30, 2020 were $21.6 million, compared to $17.5 million for the same
period in 2019.
Three Months Ended June
30,
Six Months Ended June
30,
(In millions)
2020
2019
2020
2019
Research and development
$
41.5
$
36.5
$
83.0
$
71.3
General and administrative
17.9
14.6
34.0
31.7
Total operating expenses
59.4
51.1
117.0
103.0
Stock-based compensation expense
(6.7
)
(4.9
)
(12.4
)
(9.4
)
Non-GAAP operating expenses
$
52.7
$
46.2
$
104.6
$
93.6
Total operating expenses were $59.4 million for the second
quarter ended June 30, 2020, compared to $51.1 million for the same
period in 2019. Non-GAAP operating expenses, which exclude
stock-based compensation expense, were $52.7 million for the second
quarter ended June 30, 2020, compared to $46.2 million for the same
period in 2019. The increase in operating expenses reflects our
headcount growth and facilities expansion to support the
advancement of our therapeutic pipeline and manufacturing
capabilities. These increases were partially offset by a decrease
in clinical and manufacturing supply expenses.
Financial Guidance for 2020
- On a GAAP basis, we are revising our operating expense
guidance. We expect operating expenses to be in the range of $235
million to $250 million (previously expected to be in the range of
$270 million to $285 million). This includes estimated stock-based
compensation expense of approximately $25 million.
- We expect non-GAAP operating expenses, which excludes
stock-based compensation expense, to be in the range of $210
million to $225 million (previously expected to be in the range of
$245 million to $260 million).
- The reduction in our operating expense guidance is primarily
driven by the evolving COVID-19 pandemic and its anticipated impact
on our clinical program timelines.
Conference Call
Sangamo will host a conference call today, August 5, 2020, 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 5667347. Participants may
access the live webcast via a link on the Sangamo Therapeutics
website in the Investors and Media section under Events and
Presentations. 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 5667347.
About Sangamo Therapeutics
Sangamo Therapeutics is committed to translating ground-breaking
science into genomic medicines with the potential to transform
patients’ lives using gene therapy, ex vivo gene-edited cell
therapy, and in vivo genome editing and genome 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 relating to the potential
to develop, obtain regulatory approvals for and commercialize
therapies to treat certain diseases and the timing, availability
and costs of such therapies, the potential to use our zinc finger
technology to develop such therapies, the potential to receive an
upfront licensing fee and earn milestone payments and royalties
under the collaboration with Novartis and the timing of such fees,
payments and royalties, the anticipated benefits of Sangamo’s
organizational changes, Sangamo’s financial resources and
expectations, the effects of the evolving COVID-19 pandemic and the
anticipated impacts of the pandemic on the business and operations
of Sangamo and its collaborators, Sangamo’s 2020 financial guidance
related to GAAP and non-GAAP total operating expenses and
stock-based compensation and other statements that are not
historical fact. These statements are not guarantees of future
performance and are subject to certain risks and uncertainties that
are difficult to predict. Factors that could cause actual results
to differ include, but are not limited to, risks and uncertainties
related to the effects of the evolving COVID-19 pandemic and the
impacts of the pandemic on the global business environment,
healthcare systems and business and operations of Sangamo and its
collaborators; the research and development process, including the
results of clinical trials; the regulatory approval process for
product candidates; the manufacturing of products and product
candidates; the commercialization of approved products; the
potential for technological developments that obviate technologies
used by Sangamo and its collaborators; the potential for Sangamo or
its collaborators to breach or terminate collaboration agreements;
the potential for Sangamo to fail to realize its expected benefits
of its collaborations; and Sangamo’s ability to achieve expected
future financial performance.
There can be no assurance that Sangamo and its collaborators
will be able to develop commercially viable products. Actual
results may differ from those projected in forward-looking
statements due to risks and uncertainties that exist in the
operations and business environments of Sangamo and its
collaborators. These risks and uncertainties are described more
fully in Sangamo’s Securities and Exchange Commission filings and
reports, including in Sangamo’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2020. 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.
Non-GAAP Financial Measures
To supplement Sangamo’s financial results and guidance presented
in accordance with GAAP, Sangamo presents non-GAAP total operating
expenses, which exclude stock-based compensation expense from GAAP
total operating expenses. Sangamo believes that this non-GAAP
financial measure, when considered together with its financial
information prepared in accordance with GAAP, can enhance
investors’ and analysts’ ability to meaningfully compare Sangamo’s
results from period to period and to its forward-looking guidance,
and to identify operating trends in Sangamo’s business. Sangamo has
excluded stock-based compensation expense because it is a non-cash
expense that may vary significantly from period to period as a
result of changes not directly or immediately related to the
operational performance for the periods presented. This non-GAAP
financial measure is in addition to, not a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP. Sangamo encourages investors to carefully
consider its results under GAAP, as well as its supplemental
non-GAAP financial information, to more fully understand Sangamo’s
business.
SELECTED CONDENSED CONSOLIDATED FINANCIAL DATA (unaudited;
in thousands, except per share data)
Statement of
Operations Data:
Three months ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Revenues
$
21,553
$
17,548
$
34,629
$
25,619
Operating expenses: Research and development
41,523
36,455
83,002
71,305
General and administrative
17,927
14,597
34,046
31,715
Total operating expenses
59,450
51,052
117,048
103,020
Loss from operations
(37,897
)
(33,504
)
(82,419
)
(77,401
)
Interest and other income, net
1,932
3,148
3,480
4,842
Net loss
(35,965
)
(30,356
)
(78,939
)
(72,559
)
Net loss attributable to non-controlling interests
(36
)
(72
)
(97
)
(125
)
Net loss attributable to Sangamo Therapeutics, Inc. stockholders
$
(35,929
)
$
(30,284
)
$
(78,842
)
$
(72,434
)
Basic and diluted net loss per share attributable to Sangamo
Therapeutics Inc. stockholders
$
(0.26
)
$
(0.26
)
$
(0.62
)
$
(0.67
)
Shares used in computing basic and diluted net loss per share
attributable to Sangamo Therapeutics, Inc. stockholders
138,977
114,382
127,519
108,360
Balance Sheet Data: June
30, 2020 December 31, 2019
Cash, cash equivalents and marketable securities
$
664,853
$
384,306
Total assets
894,659
637,516
Total stockholders' equity
511,206
432,739
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version on businesswire.com: https://www.businesswire.com/news/home/20200805005270/en/
Investor Relations – Global McDavid
Stilwell 510-970-6000, x219 mstilwell@sangamo.com
Media 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
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