Sangamo BioSciences to Acquire Ceregene

                   Sangamo BioSciences to Acquire Ceregene

Acquisition Provides Significant Portfolio of AAV Assets Including
Manufacturing, Regulatory and Intellectual Property and a Fully Enrolled,
Fully Funded Phase 2 trial in Alzheimer's Disease

PR Newswire

RICHMOND, Calif., Aug. 26, 2013

RICHMOND, Calif., Aug. 26, 2013 /PRNewswire/ -- Sangamo BioSciences, Inc.
(Nasdaq: SGMO) announced that it signed a definitive agreement to acquire
Ceregene, Inc., a privately held biotechnology company focused on developing
adeno-associated virus (AAV) gene therapies. Sangamo will host a
teleconference at 8:30 am ET tomorrow, Tuesday, August 27, 2013, to discuss
the acquisition and provide a general business overview.

(Logo: http://photos.prnewswire.com/prnh/20130102/SF35903LOGO)

"Ceregene is a leader in development and manufacturing of AAV-based therapies
with significant clinical development experience," said Edward Lanphier,
Sangamo's president and CEO. "Since their inception in 2001, the company has
safely treated over 115 subjects in four clinical trials. Sangamo has acquired
all of Ceregene's AAV assets including CERE-110, AAV delivery of nerve growth
factor (NGF) to the brain for the treatment of Alzheimer's disease. CERE-110
is being evaluated in a fully enrolled and fully funded Phase 2 clinical
trial. In addition to the AAV platform, the assets also include one of the
world's largest databases of AAV GMP manufacturing know-how, toxicology data,
and safety data from their human clinical trials, which will be an invaluable
resource as we advance our ZFP Therapeutics."

Under the terms of the definitive agreement Sangamo will issue to the
stockholders of Ceregene 100,000 shares of Sangamo's common stock, which
represents less than 0.2 percent of Sangamo's total shares outstanding. In
addition, Sangamo has agreed to make contingent earn-out payments to the
stockholders of Ceregene based upon revenues generated from license or sales
transaction of certain existing products of Ceregene. The acquisition is
expected to close in September 2013, subject to customary closing conditions.
The Company does not expect the acquisition, including the ongoing Phase 2
clinical trial, to have any impact on its financial guidance regarding 2013
operating expenses or yearend cash. A more detailed description of the terms
of the definitive agreement is available in the Form 8-K filed by the Company
with the Securities and Exchange Commission on this date.

Sangamo will receive over 120 issued, pending or in-licensed patents that
include patent families covering the AAV vector platform and manufacturing
methods, therapeutic transgenes, and technology for direct administration of
AAV to the brain. Sangamo will also have access to GMP master cell banks,
materials and manufacturing know-how that will expand its capabilities in AAV
manufacturing as well as a database of preclinical efficacy and toxicology
studies and other documentation supporting Ceregene's Investigational New Drug
(IND) applications. These materials provide valuable reference materials for
Sangamo in the preparation and filing of IND applications for its in vivo ZFP
Therapeutics^®, particularly those that target the brain. In addition, Sangamo
will acquire all of Ceregene's preclinical and clinical therapeutic programs
including its ongoing double-blind, placebo-controlled Phase 2 trial to
evaluate its NGF-AAV (CERE-110) in Alzheimer's disease (AD) and the
proprietary needle device for brain delivery of AAV with supporting regulatory
documentation and clinical experience.

In 2008, Ceregene, and its collaborators at the Alzheimer's Disease
Cooperative Study (ADCS), based at the University of California, San Diego
(UCSD), were awarded a $5.4 million grant from the National Institute of Aging
of the National Institutes of Health (NIH) to support the double-blind,
placebo-controlled, Phase 2 clinical trial of CERE-110 in 50 subjects with
mild to moderate AD. Using AAV to produce a steady supply of NGF in a specific
area of the brain, the treatment is designed to address the loss of
cholinergic neurons which is associated with memory loss and cognitive decline
in AD. The trial is fully enrolled and the subjects, half of whom were treated
with CERE-110 and half with sham surgery (placebo), are in the follow-up stage
of the study which will evaluate the effect of treatment on established
clinical end-points in cognitive function and quality of life. The results
of this trial are expected in 2015.

"Over 5 million people in the U.S. live with Alzheimer's, which is a
devastating disease for both patients and their families, and more effective
treatment options are needed," stated Geoff Nichol, M.B. Ch.B., Sangamo's
executive vice president of research and development. "Early data from the
CERE-110 program are encouraging. Clinical data from a Phase 1 study
demonstrate that CERE-110 can be safely injected into a specific area of the
brain and preclinical studies suggest that treatment can produce levels of NGF
that protect cholinergic neurons. The award granted by the NIH to fund the
Phase 2 trial, and participation of the ADCS, a pre-eminent research
consortium for testing new treatments for Alzheimer's, demonstrate strong
support for the development of this novel therapeutic."

Conference Call Tomorrow
Sangamo will host a teleconference and webcast tomorrow, Tuesday, August 27,
2013, at 8:30 a.m. ET, to discuss the acquisition and provide a general
business overview. The live webcast 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.

The call will be open to the public: dial-in numbers are 877-377-7553 for
domestic callers and 678-894-3968 for international callers. The passcode for
the call is 41535274. A replay will be available from approximately 11:30
a.m. ET on August 27, 2013 to 11:59 p.m. ET on September 3, 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 41535274.

About CERE-110
CERE-110 is an AAV vector that carries the gene for NGF, a naturally occurring
protein that maintains survival of nerve cells in the brain. CERE-110 is
surgically injected into the nucleus basalis of Meynert (NBM), a specific
region of the brain where cholinergic neurons degenerate in AD. The
cholinergic system is important in memory and cognitive function, and
restoration in the function of this system may improve memory in individuals
with AD. Delivery of NGF using an AAV vector should have the potential to
induce safe and sustained expression of NGF, resulting in long-lasting
restoration of function and protection from further degeneration.

About Alzheimer's Disease (AD)
AD is a progressive brain disease that gradually destroys memory and a
person's ability to learn, reason, communicate and carry out daily
activities. There are now more than five million people in the U.S. living
with AD and there is currently no cure.

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 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 may contain forward-looking statements based on Sangamo's
current expectations. These forward-looking statements include, without
limitation, references to the research and development of novel ZFP TFs and
ZFNs their applications in research and the treatment of disease, integration
of AAV-based technology and know-how in the development of ZFP Therapeutics
and the closing of the acquisition of Ceregene. Actual results may differ
materially from these forward-looking statements due to a number of factors,
including uncertainties relating to the initiation and completion of our
clinical trials, whether the clinical trials will validate and support the
tolerability and efficacy of ZFNs, technological challenges, Sangamo's ability
to develop commercially viable products, risks associated with the protection
of our proprietary technology, technological developments by our competitors,
developments at Ceregene after the signing of the definitive agreement and the
integration of Ceregene's assets into Sangamo. For a more detailed discussion
of these and other risks, please see Sangamo's SEC filings, including the risk
factors described in its Annual Report on Form 10-K and its most recent
Quarterly Report on Form 10-Q. Sangamo BioSciences, Inc. assumes no obligation
to update the forward-looking information contained in this press release.

SOURCE Sangamo BioSciences, Inc.

Website: http://www.sangamo.com
Contact: Sangamo BioSciences, Inc., Elizabeth Wolffe, Ph.D., 510-970-6000,
x271, ewolffe@sangamo.com
 
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