Sangamo BioSciences Reports First Quarter 2013 Financial Results
RICHMOND, Calif., May 8, 2013
RICHMOND, Calif., May 8, 2013 /PRNewswire/ -- Sangamo BioSciences, Inc.
(Nasdaq: SGMO) today reported first quarter 2013 financial results and
For the first quarter ended March 31, 2013, Sangamo reported a consolidated
net loss of $6.9 million, or $0.13 per share, compared to a net loss of $7.3
million, or $0.14 per share, for the same period in 2012. As of March 31,
2013, the company had cash, cash equivalents, marketable securities and
interest receivable of $70.3 million.
Revenues for the first quarter of 2013 were $4.6 million, compared to $3.2
million for the same period in 2012. First quarter 2013 revenues were
generated from the Company's collaboration agreements with Shire AG (Shire)
and Sigma-Aldrich Corporation, and research grants. The revenues recognized
for the first quarter of 2013 consisted of $4.1 million in collaboration
agreements and $0.5 million in research grants, compared to $1.7 million and
$1.6 million, respectively, for the same period in 2012.
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 first quarter of 2013. Sangamo also recognized $3.2 million
of revenues related to research services performed under the collaboration
agreement with Shire in the first quarter. The decrease in research grant
revenues was primarily due to the completion of foundation grants in 2012.
Research and development expenses were $8.2 million for the first quarter of
2013, compared to $7.3 million for the same period in 2012. The increase in
research and development expenses was primarily due to increased external
expenses related to 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 $3.3 million for the first quarter of
2013 and $3.2 million for the same period in 2012.
Total operating expenses for the first quarter of 2013 were $11.5 million,
compared to $10.5 million for the same period in 2012.
oPresentation at CROI 2013 of New Clinical Data Demonstrating Persistent
Immune System Reconstitution After Treatment With ZFN Therapeutic®
SB-728-T. In March 2013, the Company announced new data from its program
to develop a 'functional cure' for HIV/AIDS, in a presentation at the 20th
Conference on Retroviruses and Opportunistic Infections (CROI). The data,
from the SB-728-T Phase 1 study (SB-728-902, Cohorts 1-3), demonstrated
that SB-728-T treatment of HIV-infected subjects leads to durable
reconstitution of the immune system driven by increases in total CD4+
central memory T-cells (T[CM]) and CCR5-protected T[CM]. T[CM] are
long-lived, self-renewing cells that have the ability to remember and
react against foreign antigens including HIV. The data also demonstrated
that certain cell surface marker and gene expression profiles may predict
which patients will likely respond best to SB-728-T treatment.
The Company has two ongoing Phase 2 clinical trials (SB-728-902 Cohort 5
and SB-728-1101) designed to evaluate the relationship of the level of
engraftment of T-cells in which both copies of the CCR5 gene has been
modified by SB-728 (biallelic engraftment) and reduction in viral load.
Sangamo expects to present preliminary data from these trials on May 15,
2013, at the Annual Meeting of the American Society for Gene and Cell
Therapy (ASGCT) and the full data set by the end of 2013.
The Company reiterates its earlier guidance as follows:
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.
Sangamo will host a conference call today, May 8, 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"
http://investor.sangamo.com/events.cfm. A replay of the webcast 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 the rest of 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
52754725. 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 May 8, 2013 to 11:59 p.m. ET on May 15, 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 52754725.
Sangamo BioSciences, Inc. is focused on research and development of novel
DNA-binding proteins for therapeutic gene regulation and genome editing. It
has ongoing Phase 2 and Phase 1/2 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 and hemoglobinopathies such as sickle cell anemia and
beta-thalassemia, and a program in Parkinson's disease. 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 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 www.sangamo.com.
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 year-end cash and investments, operating
expenses and revenues from agreements, the research and development of ZFP TFs
and ZFNs, achievement of research milestones and objectives, clinical trials
and therapeutic applications of Sangamo's ZFP technology platform and expected
timing for thepresentation of data from clinical trials. 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, 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 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 the company's operations and
business environments. These risks and uncertainties are described more fully
in the Company'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 will
not be updated.
SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share data)
Statement of Operations Data:
Three Months Ended
Collaboration agreements $ 4,083 $
Research grants 540 1,579
Total revenues 4,623 3,242
Research and development 8,220 7,283
General and administrative 3,308 3,242
Total operating expenses 11,528 10,525
Loss from operations (6,905) (7,283)
Interest and other income, net 20 15
Net loss $ (6,885) $
Basic and diluted net loss per common $ (0.13) $
Shares used in computing basic and
diluted net loss per 53,377 52,567
March 31, 2013 December 31, 2012
Selected Balance Sheet Data:
Cash, cash equivalents, marketable $ 70,318 $
securities and interest receivable 76,321
Total assets 75,844 82,533
Total stockholders' equity 61,586 64,896
SOURCE Sangamo BioSciences, Inc.
Contact: Sangamo BioSciences, Inc., Elizabeth Wolffe, Ph.D., 510-970-6000,
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