Sangamo BioSciences Reports Second Quarter 2014 Financial Results

      Sangamo BioSciences Reports Second Quarter 2014 Financial Results

PR Newswire

RICHMOND, Calif., July 23, 2014

RICHMOND, Calif., July 23, 2014 /PRNewswire/ --Sangamo BioSciences, Inc.
(NASDAQ: SGMO) today reported its second quarter 2014 financial results and
accomplishments.

Sangamo BioSciences, Inc.

For the second quarter ended June 30, 2014, Sangamo reported a consolidated
net loss of $7.0 million, or $0.10 per share, compared to a net loss of $5.5
million, or $0.10 per share, for the same period in 2013. As of June 30, 2014,
the Company had cash, cash equivalents, marketable securities and interest
receivable of $236.7 million.

Revenues for the second quarter of 2014 were $10.4 million, compared to $6.9
million for the same period in 2013. Second quarter 2014 revenues were
generated from the Company's collaboration agreements with Shire International
GmbH (Shire), Biogen Idec (Biogen), enabling technology agreements and
research grants. The revenues recognized for the second quarter of 2014
consisted of $9.7 million in collaboration agreements and $0.7 million in
research grants, compared to $6.2 million and approximately $0.8 million,
respectively, for the same period in 2013.

The increase in collaboration agreement revenues was primarily due to an
increase in revenues under the Company's collaboration and license agreements
with Shire and Biogen. In the second quarter of 2014, Sangamo recognized
approximately $5.9 million of revenues related to research services performed
under the collaboration agreement with Shire, and $1.3 million of revenues
related to research services performed under the collaboration agreement with
Biogen. In addition, pursuant to the agreements entered into with Shire in
January 2012 and Biogen in January 2014, Sangamo received upfront payments of
$13.0 million and $20.0 million, respectively. These payments are being
recognized on a straight-line basis over the initial six-year research term
for Shire and approximately 40 months for Biogen. The Company recognized $0.5
million of the Shire upfront payment and $1.5 million of the Biogen upfront
payment as revenue for the second quarter of 2014.

Research and development expenses were $13.4 million for the second quarter of
2014, compared to $9.3 million for the same period in 2013. The increase in
research and development expenses was primarily due to increases in external
research expenses associated with our preclinical programs and
personnel-related expenses, including stock-based compensation. General and
administrative expenses were $4.0 million for the second quarter of 2014,
compared to $3.1 million for the same period in 2013.

Total operating expenses for the second quarter of 2014 were $17.4 million,
compared to $12.4 million for the same period in 2013.

Six Months Results

For the six months ended June 30, 2014, the consolidated net loss was $14.6
million, or $0.22 per share, compared to a consolidated net loss of $12.3
million, or $0.23 per share, for the six months ended June 30, 2013. Revenues
were $18.5 million for the first half of 2014, compared to $11.6 million for
the same period in 2013. Total operating expenses were $33.2 million for the
first half of 2014, compared to $23.9 million for the first half of 2013.

Quarter Highlights

  oSangamo BioSciences and City of Hope were granted a Strategic Partnership
    Award from California Institute for Regenerative Medicine (CIRM) to
    support a Phase 1 clinical trial of Sangamo's HIV/AIDS stem-cell program.
    In May 2014, CIRM granted a $5.6 million Strategic Partnership Award to
    fund clinical studies at City of Hope to develop a ZFP Therapeutic for
    HIV/AIDS based on the application of Sangamo's zinc finger nuclease (ZFN)
    genome-editing technology in hematopoietic stem/progenitor cells (HSPCs).
    The four-year grant provides matching funds to support a Phase 1,
    open-label study to evaluate the safety and tolerability, feasibility, and
    engraftment of ZFN CCR5-modified autologous CD34+ HSPCs in immunologic
    non-responders, a population of HIV-1 infected individuals who have
    suboptimal CD4 levels despite having levels of virus that are well
    controlled by anti-retroviral therapy (ART). ZFN genome-editing technology
    has already been successfully used to generate CCR5-modified autologous
    CD4 T-cells (SB-728-T) and demonstrated patient safety and tolerability in
    HIV-1 infected subjects. Sangamo has an ongoing Phase 2 clinical trial of
    SB-728-T which is designed to evaluate enhancement of engraftment of
    ZFN-modified cells using an optimal dose of Cytoxan preconditioning and
    certain improvements in process development.
  oPresentation of clinical update on subjects in SB-728-T program and
    progress in other therapeutic and research programs at the Annual Meeting
    of the American Society of Gene and Cell Therapy (ASGCT). Dale Ando, M.D.,
    Sangamo's vice president of therapeutic development and chief medical
    officer, presented an update on subjects in the completed clinical trials
    of SB-728-T for HIV/AIDS, at the 17th Annual ASGCT Meeting held in May
    2014. He reported that one subject, enrolled in the SB-728-902 Cohort 5
    study, demonstratedcontinuing control of circulating viral load at low
    levels for 45 weeks of a treatment interruption (TI) of their ART. The
    subject has now sustained control of viral load for over one year. A
    second subject, enrolled in the SB-728-1101 Cytoxan pre-conditioning study
    at the 1 g/m^2 dose, has experienced a greater than two-log sustained
    decrease in circulating viral load from peak during TI for over 34 weeks.
    Both subjects remain off ART. The Company also outlined other data from
    preclinical and research-stage programs focused on the development of ZFP
    Therapeutics^®, including Huntington's disease and research-stage
    collaborations in other monogenic diseases, cancer immunotherapy and
    advancements in the technology.
  oPublication of preclinical data demonstrating gene correction in SCID-X1
    HPSCs in Nature. In May 2014, Nature published a study entitled "Targeted
    genome-editing in human repopulating haematopoietic stem cells" authored
    by Sangamo scientists and collaborators. The data demonstrated methods for
    efficient ZFN-mediated, targeted gene insertion that resulted in
    correction of the genetic defect in HPSCs from an individual with X-linked
    severe combined immunodeficiency (SCID-X1). Importantly, the study
    demonstrates that the treatment successfully targets a class of HSPCs that
    are responsible for the long term repopulation of the bone marrow
    following transplant. The data support the clinical translation of this
    approach for SCID-X1, other immunodeficiencies and monogenic diseases.
  oAppointment of H. Stewart Parker to the Board of Directors. In June,
    Sangamo appointed H. Stewart Parker to its board of directors. Ms. Parker,
    who founded and served as President and CEO of Targeted Genetics
    Corporation, brings more than 30 years of experience in the biotechnology
    industry, including 16 years of specific experience in cell and gene
    therapy.
  oAppointment of Vice President of Manufacturing, Stewart Craig, Ph.D. Dr.
    Craig, who joined Sangamo in May 2014, has 30 years of experience in the
    biotechnology industry, specifically in the research, development,
    manufacture and regulation of biotherapeutics including both gene and
    cell-based therapies. He has held executive roles leading and developing
    GMP manufacturing operations and facilities including overseeing the
    design, construction and validation of a number of GMP manufacturing
    facilities. Dr. Craig will be responsible for overseeing the manufacturing
    of all biotherapeutics for the Company.

Financial Guidance for 2014

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 $225 million at the end of 2014,
    inclusive of research funding and certain milestone payments from Shire
    and Biogen but exclusive of funds arising from any additional new
    collaborations or partnerships, equity financings or other new sources.
  oRevenues: Sangamo expects that revenues will be in the range of $45
    million to $50 million in 2014, inclusive of research funding and certain
    milestone payments from Shire and Biogen.
  oOperating Expenses: Sangamo expects that operating expenses will be in the
    range of $65 million to $70 million for
    2014.

Conference Call

Sangamo will host a conference call today, July 23, 2014, 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 2014.

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 69820610. 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 23, 2014 to 11:59 p.m. ET on
July 30, 2014. 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 69820610.

About Sangamo

Sangamo BioSciences, Inc. is focused on Engineering Genetic Cures^TM for
monogenic and infectious diseases by deploying its novel DNA-binding protein
technology platform in 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 (SB-728-T)
and NGF-AAV for Alzheimers disease (CERE-110). Sangamo's other therapeutic
programs are focused on monogenic and rare diseases. The Company has formed a
strategic collaboration with Shire International GmbH to develop therapeutics
for hemophilia, Huntington's disease and other monogenic diseases, and with
Biogen Idec for hemoglobinopathies, such as sickle cell disease and
beta-thalassemia. It has also 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 cash and investment balance, operating
expenses, revenue and potential milestone and royalty payments, the research
and development of ZFNs and ZFP TFs, clinical trials and therapeutic
applications of Sangamo's ZFP technology platform, revenue recognition and
achievement of research milestones and objectives under collaboration
agreements with Shire and Biogen, and enrollment of subjects in 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, 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.

SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per
share data)
(unaudited)
                              Three Months Ended  Six Months Ended
                               June 30,            June 30,
                              2014          2013     2014         2013
Statement of Operations Data:
Revenues:
Collaboration agreements      $   9,721  $     $  17,289   $  10,240
                                            6,157
Research grants               664           777      1,212        1,317
Total revenues                10,385        6,934    18,501       11,557
Operating expenses:
Research and development      13,430        9,278    25,463       17,498
General and administrative    3,972         3,124    7,616        6,432
Change in fair value of       30            -        80           -
contingent liability
Total operating expenses      17,432        12,402   33,159       23,930
Loss from operations          (7,047)       (5,468)  (14,658)     (12,373)
Interest and other income,    66            18       105          38
net
Net loss                      $  (6,981)  $      $ (14,553)  $  (12,335)
                                            (5,450)
Basic and diluted net loss    $           $     $          $   
per common share              (0.10)       (0.10)  (0.22)      (0.23)
Shares used in computing
basic and diluted net loss    67,980        53,786   65,603       53,583
per common share

SELECTED BALANCE SHEET DATA
                                              June 30, 2014  December 31, 2013
                                              (Unaudited)
Cash, cash equivalents, marketable securities $   236,708  $      
and interest receivable                                      131,814
Total assets                                  250,837        140,838
Total stockholders' equity                    214,357        121,710

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SOURCE Sangamo BioSciences, Inc.

Website: http://www.sangamo.com
Contact: Sangamo BioSciences, Inc., Elizabeth Wolffe, Ph.D., (510) 970-6000,
x271, or Varant Shirvanian, (510) 970-6000, x205
 
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