Richmond, California
October 24, 2007
Sangamo BioSciences, Inc. (Nasdaq: SGMO) today reported
financial results for the third quarter ended September 30,
2007. Revenues for the third quarter of 2007 were $2.3 million
as compared to third quarter 2006 revenues of $1.8 million.
Third quarter 2007 revenues were primarily from Sangamo's
agreements with Dow AgroSciences (DAS), Sigma-Aldrich
Corporation, private foundation research grants, and enabling
technology agreements in protein production.
The consolidated net loss for the quarter ended September 30,
2007 was $4.3 million, or $0.11 per share, as compared to a net
loss of $2.8 million, or $0.08 per share, in the same period of
2006. At September 30, 2007, the Company had cash, cash
equivalents and investments of $84.2 million.
Total third quarter 2007 operating expenses were $7.6 million as
compared to $5.4 million in the prior year period. Research and
development expenses were $5.9 million for the three months
ended September 30, 2007 as compared to $3.9 million for the
third quarter of 2006. General and administrative expenses were
$1.7 million for the three months ended September 30, 2007 and
$1.6 million for the third quarter of 2006. The increase in
expenses for the third quarter of 2007 was primarily associated
with the Company's clinical program in diabetic neuropathy and
pre-IND programs to develop ZFP Therapeutics for the treatment
of HIV/AIDS and glioblastoma, as well as increased personnel and
lab supply expenses due to increased headcount in the Research
and Development departments.
During the third quarter of 2007, Sangamo entered into a license
agreement with Sigma-Aldrich under which Sangamo received $13.5
million, which was comprised of an equity investment by Sigma of
Sangamo's common stock valued at $8.55 million, a $3.95 million
license fee and $1.0 million of research funding. Sangamo plans
to recognize the $1.0 million of research funding over a 12
month period and the $3.95 million license fee over the entire
36 month research period of the agreement.
Net interest and other income for the third quarter of 2007 was
$1.1 million as compared to $798,000 in the comparable period of
2006.
Recent Highlights
- Establishment of major
alliance with Sigma-Aldrich Corporation to develop and
commercialize high value laboratory research reagents based
upon Sangamo's zinc finger DNA binding protein technology.
In July 2007, as part of the agreement, Sangamo received an
upfront payment of $13.5 million which included license fees
and the purchase of one million shares of Sangamo stock.
Sangamo is also eligible to receive development and
commercial milestone payments of up to $24 million and
royalties on product sales.
- Sangamo closed a
registered direct offering to institutional investors. In
July 2007, Sangamo sold an aggregate of 3,278,689 shares of
common stock to a group of institutional investors in a
registered direct offering, resulting in gross proceeds to
the company of approximately $30.0 million before fees and
expenses.
- Presentation of in vivo
protection data from ZFN HIV Program at the 47th Annual
Interscience Conference on Antimicrobial Agents and
Chemotherapy (ICAAC). Sangamo scientists presented data
demonstrating that human CD4 T-cells can be made permanently
resistant to HIV infection by treatment with zinc finger
DNA-binding protein nucleases (ZFN(TM)) and preferentially
survive and expand in an animal after HIV infection. In
addition, they reported on the successful ZFN-modification
of clinical-scale quantities of human CD4 T-cells.
- Dow
Chemical Company highlights Sangamo technology. In a
September teleconference hosted by the Dow Chemical Company
(Dow), the CEOs of both Dow and
Dow AgroSciences
described their enthusiasm for Dow's successful partnership
with Sangamo, the power of Sangamo's ZFP technology and its
potential role in Dow's future.
Nine-Month Results
For the nine-month period ended September 30, 2007 the
consolidated net loss was $14.8 million, or $0.41 per share,
compared with a consolidated net loss of $8.9 million, or $0.28
per share, in the comparable period in 2006. Revenues for the
nine months ended September 30, 2007 were $6.3 million as
compared to $5.7 million in the same period of 2006. Total
expenses for the nine months ended September 30, 2007 and 2006
were $23.5 million and $16.6 million, respectively. The increase
in total expenses for the nine month period ended September 30,
2007 was primarily associated with our clinical program in
diabetic neuropathy and pre-IND programs to develop ZFP
Therapeutics for the treatment of HIV/AIDS and glioblastoma, as
well as increased personnel headcount and lab supply expenses in
the Research and Development departments.
Sangamo BioSciences, Inc. is focused on the research and
development of novel DNA-binding proteins for therapeutic gene
regulation and modification. The most advanced ZFP
Therapeutic(TM) development program is currently in Phase 2
clinical trials for evaluation of safety and clinical effect in
patients with diabetic neuropathy. Phase 1 clinical trials are
ongoing to evaluate a ZFP Therapeutic for peripheral artery
disease. Other therapeutic development programs are focused on
cancer and HIV/AIDS, neuropathic pain, nerve regeneration,
Parkinson's disease and monogenic diseases. Sangamo's core
competencies enable the engineering of a class of DNA-binding
proteins known as zinc finger DNA-binding proteins (ZFPs). By
engineering ZFPs that recognize a specific DNA sequence Sangamo
has created ZFP transcription factors (ZFP TF(TM)) that can
control gene expression and, consequently, cell function.
Sangamo is also developing sequence-specific ZFP Nucleases
(ZFN(TM)) for gene modification. Sangamo has established
strategic partnerships with companies outside of the human
therapeutic space including Dow AgroSciences, Sigma-Aldrich
Corporation and several companies applying its ZFP Technology to
enhance the production of protein pharmaceuticals. |
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