Sangamo BioSciences Reports Fourth Quarter And Full Year 2012 Financial Results

   Sangamo BioSciences Reports Fourth Quarter And Full Year 2012 Financial

PR Newswire

RICHMOND, Calif., Feb. 6, 2013

RICHMOND, Calif., Feb. 6, 2013 /PRNewswire/ --Sangamo BioSciences, Inc.
(Nasdaq: SGMO) today reported fourth quarter and full year 2012 financial
results and accomplishments.


For the fourth quarter ended December 31, 2012, Sangamo reported a
consolidated net loss of $3.5 million, or $0.07 per share, compared to a net
loss of $6.4 million, or $0.12 per share, for the same period in 2011. As of
December 31, 2012, the Company had cash, cash equivalents, marketable
securities and interest receivable of $76.3 million.

Revenues were $8.9 million for the fourth quarter of 2012, compared to $4.7
million for the same period in 2011. Fourth quarter 2012 revenues were
generated from the Company's collaboration agreements with Shire AG (Shire),
Dow AgroSciences (DAS) and Sigma-Aldrich Corporation (Sigma), and research
grants. The revenues recognized for the fourth quarter of 2012 consisted of
$8.5 million in collaboration agreements and $0.4 million in research grants,
compared to $3.2 million and $1.5 million, respectively, for the same period
in 2011.

The increase in collaboration agreement revenues was primarily due to the
Company's collaboration and license agreement with Shire established in
January 2012. Pursuant to the agreement, Sangamo received an upfront payment
of $13.0 million, which is being amortized on a straight-line basis over the
initial six-year research term, of which the Company recognized $0.5 million
as revenue for the fourth quarter of 2012. Sangamo also recognized $4.3
million of revenues related to research services performed under the
collaboration agreement with Shire in the fourth quarter. The increase in
collaboration agreement revenues for the fourth quarter of 2012 was also
partly attributable to increased minimum annual sublicensing revenue from DAS.

Research and development expenses were $9.3 million for the fourth quarter of
2012, compared to $7.9 million for the same period in 2011. The increase in
research and development expenses for the fourth quarter of 2012 was primarily
related to the increase in external research expenses associated with our
preclinical programs, partially offset by lower clinical trials and
manufacturing expenses for our SB-728-T HIV/AIDS program. General and
administrative expenses were $3.0 million for the fourth quarter of 2012 and
$3.2 million for the same period in 2011.

Total operating expenses for the fourth quarter of 2012 were $12.3 million,
compared to $11.1 million for the same period in 2011.

Full Year Results
For the year ended December 31, 2012, the consolidated net loss was $22.3
million, or $0.42 per share, compared to a consolidated net loss of $35.8
million, or $0.71 per share, for the year ended December 31, 2011. Revenues
were $21.7 million in 2012, compared to $10.3 million in 2011, with the
increase primarily due to Sangamo's collaboration agreement with Shire. Total
operating expenses were $43.9 million for 2012 and $46.1 million for 2011.

Recent Events

  oThe Company Provided a Comprehensive Overview of its ZFP Therapeutic®
    Development Programs at its December 6, 2012 Analyst and Investor
    Briefing. Sangamo's management team provided an update on the Company's
    technology platform advancements and pipeline of ZFP Therapeutics^® as
    well as near- and mid-term operating and financial goals during an Analyst
    and Investor Briefing on December 6, 2012. A webcast of the presentation
    can be accessed Company's website in the Investor section under Events and
  oPresentation of Data Demonstrating a Disruptive and Broadly Leverageable
    Platform For Protein Replacement Therapies at the American Society Of
    Hematology Meeting (ASH). New pre-clinical data were presented
    demonstrating the successful application of Sangamo's In Vivo Protein
    Replacement Platform^TM. Based on the Company's zinc finger DNA-binding
    protein nuclease (ZFN) genome-editing technology, the platform enables the
    permanent production of therapeutic proteins from the liver with a single
    systemic treatment, potentially providing curative treatments for a range
    of monogenic diseases including hemophilia and lysosomal storage diseases
    (LSD) such as Gaucher and Fabry disease. Such diseases are currently
    treated by regular infusions of protein or enzyme replacement therapy
    (ERT) throughout the patient's life.
  oFirst Presentation of Data from ZFP Therapeutic® for Huntington's Disease
    at 2012 Annual Meeting of Society for Neuroscience. Data from Sangamo's
    program with Shire AG (LSE: SHP, NASDAQ: SHPG) to develop a novel ZFP
    Therapeutic approach to Huntington's disease (HD), an inherited
    progressive neurodegenerative disease, were presented at the 2012 Annual
    Meeting of the Society for Neuroscience, the world's largest forum for
    neuroscientists. The data demonstrate that Sangamo's ZFP gene regulation
    technology (ZFP TF) can be used to selectively repress the expression of
    the mutant disease-causing form of the huntingtin gene (HTT) while leaving
    expression levels of the normal gene unchanged in cells derived from HD
    patients. Research in animal models of the disease has shown that lowering
    the levels of the defective HTT protein can prevent, or even reverse,
    disease progression. Sangamo's ZFP approach is unique in that it
    selectively shuts down the disease-causing HTT gene copy at the DNA-level
    while preserving activity of the normal gene copy.

Financial Guidance for 2013

  oCash and Investments: Sangamo expects that its cash, cash equivalents and
    marketable securities will be at least $55 million at the end of 2013,
    inclusive of research funding from Shire but exclusive of funds arising
    from any additional new collaborations or partnerships, or other new
  oRevenues: Sangamo expects that revenues will be in the range of $20 to $24
    million in 2013, inclusive of research funding from Shire.
  oOperating Expenses: Sangamo expects that operating expenses will be in the
    range of $46 to $50 million for 2013.

Conference Call
Sangamo will host a conference call today, February 6, 2013 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 BioSciences website in the Investor
Relations section under "Events and Presentations" The webcast replay will also be
available for two weeks after the call. During the conference call, the
Company will review these results, discuss other business matters, and provide
guidance with respect to 2013.

The conference call dial-in numbers are 877-377-7553 for domestic callers and
678-894-3968 for international callers. The passcode for the call is
92659211. 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 February 6, 2013 to midnight ET on February 13,
2013. 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 92659211.

About Sangamo
Sangamo BioSciences, Inc. is focused on research and development of novel
DNA-binding proteins for therapeutic gene regulation and genome editing. The
Company has ongoing Phase 2 clinical trials to evaluate the safety and
efficacy of a novel ZFP Therapeutic^® for the treatment of HIV/AIDS. Sangamo's
other therapeutic programs are focused on monogenic diseases, including
hemophilia, Huntington's disease and hemoglobinopathies such as
beta-thalassemia and sickle cell anemia. Sangamo's core competencies enable
the engineering of a class of DNA-binding proteins known as zinc finger
DNA-binding proteins (ZFPs). Engineering of ZFPs that recognize a specific
DNA sequence enables the creation of sequence-specific ZFP Nucleases (ZFNs)
for gene modification and ZFP transcription factors (ZFP TFs) that can control
gene expression and, consequently, cell function. Sangamo has entered into a
strategic collaboration with Shire AG to develop therapeutics for hemophilia,
Huntington's disease and other monogenic diseases and has established
strategic partnerships with companies in non-therapeutic applications of its
technology including Dow AgroSciences and Sigma-Aldrich Corporation. For more
information about Sangamo, visit the Company's website at

ZFP Therapeutic^® is a registered trademark of Sangamo BioSciences, Inc.

This press release contains forward-looking statements regarding Sangamo's
current expectations. These forward looking statements include, without
limitation, references to anticipated cash and investment balance, operating
expenses, revenue and related cash proceeds, the research and development of
ZFNs and ZFP TFs, clinical trials and therapeutic applications of Sangamo's
ZFP technology platform, achievement of research milestones and objectives,
strategic partnership and commercial license agreements with collaborators,
presentation of data from research collaborations, and recognition of revenues
under 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 early stage of ZFP Therapeutic
development, the lengthy and uncertain regulatory approval process,
uncertainties related to the timing of initiation and completion of clinical
trials, whether clinical trial results will validate and support the safety
and efficacy of ZFP 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.

(in thousands, except per share data)
                       Three Months Ended          Twelve Months Ended
                       December 31,                 December 31,
                       2012             2011          2012         2011
Statement of
Operations Data:
Collaboration          $         $        $ 18,186    $  6,110
agreements              8,520            3,234
Research grants        411              1,514         3,469        4,209
Total revenues         8,931            4,748         21,655       10,319
Operating expenses:
Research and           9,281            7,878         31,709       32,098
General and            3,019            3,235         12,144       14,042
Total operating        12,300           11,113        43,853       46,140
Loss from operations   (3,369)          (6,365)       (22,198)     (35,821)
Interest and other     (109)            6             (66)         71
income (expense), net
Net loss               $         $        $(22,264)    $(35,750)
                       (3,478)           (6,359)
Basic and diluted net  $         $     
loss per common share   (0.07)                   $  (0.42)  $  (0.71)
Shares used in
computing basic and    52,968           52,524        52,741       50,512
diluted net loss per
common share
Selected Balance Sheet
                       December 31,     December 31,
                       2012             2011
Cash, cash
equivalents,           $         $     
marketable securities  76,321            84,463
and interest
Total assets           82,533           87,336
Total stockholders'    64,896           80,132

SOURCE Sangamo BioSciences, Inc.

Contact: Sangamo BioSciences, Inc., Elizabeth Wolffe, Ph.D., +1-510-970-6000,
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