Sangamo Therapeutics Announces Q2 2024 Results and Business Highlights

Sangamo Therapeutics, Inc. (Nasdaq: SGMO), a genomic medicine company, has announced key business highlights and financial results for the second quarter of 2024. The company has made significant strides in the past few months, including a major business development agreement with Genentech, positive results from a Phase 3 trial for Hemophilia A in collaboration with Pfizer, and encouraging data from their Fabry disease program.

Chief Executive Officer Sandy Macrae highlighted the progress, stating that the Genentech agreement showcases the potential of Sangamo's gene editing and capsid delivery platforms. The company's neurology pipeline is advancing as planned, and further updates are anticipated.

Recent Business Highlights

Corporate Updates
Genentech License Agreement: Sangamo has entered into a global epigenetic regulation and capsid delivery license agreement with Genentech, a member of the Roche Group. This agreement grants Genentech an exclusive license to Sangamo’s zinc finger repressors targeting the tau gene, involved in Alzheimer’s disease and other tauopathies, along with another undisclosed neurology target. Sangamo will receive $50 million in upfront license fees and milestone payments and is eligible for up to $1.9 billion in development and commercial milestones.

Clinical Programs
Hemophilia A: Pfizer has announced positive topline results from the Phase 3 AFFINE trial, evaluating giroctocogene fitelparvovec, an investigational gene therapy co-developed by Sangamo for treating adults with moderately severe to severe Hemophilia A. Sangamo could earn up to $220 million in milestone payments and royalties if the therapy is approved and commercialized. The trial achieved its primary objective of non-inferiority and superiority of the annualized bleeding rate compared to routine Factor VIII replacement therapy. The therapy showed a statistically significant reduction in bleeding rates and was well tolerated by participants.

Fabry Disease: The Phase 1/2 STAAR study of isaralgagene civaparvovec, an investigational gene therapy for Fabry disease, has completed dosing with 33 patients. Encouragingly, 17 patients have successfully withdrawn from enzyme replacement therapy (ERT) and remain off ERT. Preliminary findings indicate improvements in kidney function in treated patients. Sangamo held a productive meeting with the European Medicines Agency (EMA) and is in discussions with potential collaborators for this program.

Prioritized Neurology Pipeline
Neurology Epigenetic Regulation Programs: IND enabling activities are progressing for the Nav1.7 program aimed at treating chronic neuropathic pain and for the prion disease program leveraging the STAC-BBB capsid.

Novel AAV Capsid Delivery Technology: Sangamo has advanced work on STAC-BBB, their novel neurotropic AAV capsid, demonstrating effective blood-brain barrier penetration and gene repression. They presented findings and platform advancements at the ASGCT Annual Meeting.

Next-Generation Genome Engineering: Sangamo introduced the Modular Integrase (MINT) platform, a genome editing method designed to integrate large DNA sequences. This technology, detailed in a recent bioRxiv manuscript, aims to treat patients with unique mutations and avoid double-stranded DNA breaks. The MINT platform was also presented at the FASEB Genome Engineering Conference in June 2024.

Financial Results
For the second quarter ending June 30, 2024, Sangamo reported a consolidated net loss of $36.1 million, or $0.18 per share, compared to a net loss of $114.5 million, or $0.66 per share, for the same period in 2023. Revenues were $0.3 million, down from $6.8 million the previous year, primarily due to the termination of collaboration agreements with Biogen and Novartis.

Total operating expenses on a GAAP basis were $37.4 million, significantly lower than $130.4 million for the same period in 2023. Non-GAAP operating expenses for the second quarter were $31.9 million, down from $68.1 million in 2023, mainly due to reduced compensation costs, restructuring expenses, and decreased preclinical and clinical expenses.

Cash and Cash Equivalents
As of June 30, 2024, Sangamo held $27.8 million in cash and cash equivalents, down from $81 million at the end of 2023. The recent Genentech agreement is expected to provide an additional $50 million, believed sufficient to fund operations into the first quarter of 2025.

Financial Guidance for 2024
Sangamo anticipates GAAP total operating expenses between $150 million and $170 million for 2024. Non-GAAP expenses are expected to range from $125 million to $145 million, excluding stock-based compensation, impairment expenses, and depreciation.

Upcoming Events
Sangamo plans to participate in the Wells Fargo Healthcare Conference and the H.C. Wainwright Annual Global Investment Conference in September 2024.

Sangamo Therapeutics remains committed to advancing genomic medicine and translating groundbreaking science into treatments for serious neurological diseases, leveraging its proprietary platforms and ongoing collaborations.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!