Sangamo BioSciences Reports Second Quarter 2013 Financial Results
RICHMOND, Calif., July 24, 2013
RICHMOND, Calif., July 24, 2013 /PRNewswire/ -- Sangamo BioSciences, Inc.
(Nasdaq: SGMO) today reported second quarter 2013 financial results and
For the second quarter ended June 30, 2013, Sangamo reported a consolidated
net loss of $5.5 million, or $0.10 per share, compared to a net loss of $5.7
million, or $0.11 per share, for the same period in 2012. As of June 30, 2013,
the company had cash, cash equivalents, marketable securities and interest
receivable of $66.4 million.
Revenues for the second quarter of 2013 were $6.9 million, compared to $4.6
million for the same period in 2012. Second 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 second quarter of 2013 consisted of $6.2 million in collaboration
agreements and approximately $0.8 million in research grants, compared to $3.8
million and $0.8 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 second quarter of 2013. Sangamo also recognized $4.2
million of revenues related to research services performed under the
collaboration agreement with Shire in the second quarter.
Research and development expenses were $9.3 million for the second quarter of
2013, compared to $7.6 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 trial and manufacturing expenses for our SB-728-T HIV/AIDS program.
General and administrative expenses were $3.1 million for the second quarter
of 2013 and $2.7 million for the same period in 2012.
Total operating expenses for the second quarter of 2013 were $12.4 million,
compared to $10.3 million for the same period in 2012.
Six Months Results
For the six months ended June 30, 2013, the consolidated net loss was $12.3
million, or $0.23 per share, compared to a consolidated net loss of $13.0
million, or $0.25 per share, for the six months ended June 30, 2012. Revenues
were $11.6 million for the first half of 2013, compared to $7.8 million in the
same period in 2012. Total operating expenses were $23.9 million for the first
half of 2013, compared to $20.8 million for the first half of 2012.
oPresentation of Preliminary Phase 2 Clinical Data of SB-728-T for
HIV/AIDS. In May 2013, at the 16th Annual Meeting of the American Society
of Gene and Cell Therapy (ASGCT), data were presented from the Company's
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 have been modified
(biallelic engraftment) and reduction in viral load. Two of four evaluable
subjects in Cohort 5 (CCR5 delta-32 heterozygotes) showed a decrease of
greater than one log in their viral load during a sixteen week treatment
interruption (TI) with one of the subjects achieving a transiently
undetectable viral load during the TI period. In subjects in which viral
load decreased, a measureable anti-HIV immune response was also observed.
Additional data were presented from the Company's Phase 1 study that
demonstrated a long term decrease in the peripheral blood mononuclear cell
(PBMC) HIV reservoir as measured by proviral DNA. Sangamo expects to
present the full data set from these trials by the end of 2013.
oPresentation of New Data from In Vivo Protein Replacement Platform for
Development of ZFP Therapeutics® For Monogenic Diseases. Also at ASGCT,
new data were presented demonstrating the successful application of
Sangamo's proprietary In Vivo Protein Replacement Platform (IVPRP) in the
production of therapeutically relevant levels of Factor VIII in a mouse
model. Sangamo has partnered with Shire to develop zinc finger DNA-binding
protein (ZFP) Therapeutics for both hemophilia A and B using this
oAnnouncement of $6.4 Million Strategic Partnership Award From California
Institute for Regenerative Medicine (CIRM) to Develop ZFP Therapeutic for
Beta-thalassemia. In May, Sangamo announced that the California Institute
for Regenerative Medicine (CIRM) has granted the Company a $6.4 million
Strategic Partnership Award to develop a potentially curative ZFP
Therapeutic for beta-thalassemia based on the application of its ZFP
nuclease (ZFN) gene-editing technology in hematopoietic stem cells (HSCs).
The four year grant provides matching funds for preclinical work that will
support an Investigational New Drug (IND) application and a Phase 1
clinical trial in transfusion-dependent beta-thalassemia patients.
oPublication in Nature of Research Using ZFP technology to Insert a Gene
That Permanently "Silences" the Extra Copy of Chromosome 21, the Cause of
Down Syndrome (DS). This advance, accomplished in induced pluripotent stem
cells (iPSCs) derived from DS patients, provides a model to study the
basic biology of DS which may enable the development of drugs that can
potentially rebalance the cellular processes and pathologies that are
impacted by this disorder.
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, July 24, 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
11824773.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 July 24, 2013 to 11:59 p.m. ET on July 31, 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 11824773.
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 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, 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 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, the research and development of ZFP TFs and ZFNs,
achievement of research milestones and objectives, clinical trials and
therapeutic applications and potential of Sangamo's ZFP technology platform
and expected timing for the presentation 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)
Three Months Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
Collaboration $ 6,157 $ $ 10,240 $ 5,475
Research grants 777 762 1,317 2,341
Total revenues 6,934 4,574 11,557 7,816
Research and 9,278 7,574 17,498 14,857
General and 3,124 2,744 6,432 5,986
Total operating 12,402 10,318 23,930 20,843
Loss from operations (5,468) (5,744) (12,373) (13,027)
Interest and other 18 16 38 31
Net loss $ (5,450) $ $(12,335) $(12,996)
Basic and diluted net $ $ $ (0.23) $ (0.25)
loss per common share (0.10) (0.11)
Shares used in
computing basic and 53,786 52,657 53,583 52,612
diluted net loss per
Selected Balance Sheet
June 30, 2013 December 31,
marketable securities $ 66,398 76,321
Total assets 74,196 82,533
Total stockholders' 59,378 64,896
SOURCE Sangamo BioSciences, Inc.
Contact: Elizabeth Wolffe, Ph.D., Sangamo BioSciences, Inc., 510-970-6000,
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