Richmond, California
July 24, 2007
Sangamo BioSciences, Inc. (Nasdaq: SGMO) today reported
financial results for the quarter ended June 30, 2007. Revenues
for the second quarter of 2007 were $2.6 million as compared to
second quarter 2006 revenues of $1.8 million. Second quarter
2007 revenues were from Sangamo's partnerships in the areas of
plant agriculture, private foundation and federal government
research grants and enabling technologies.
The consolidated net loss for the quarter ended June 30, 2007
was $5.2 million, or $0.15 per share, as compared to a net loss
of $3.3 million, or $0.11 per share, in the same period of 2006.
At June 30, 2007, the company had cash, cash equivalents,
investments and interest receivable of $44.6 million.
Total second quarter 2007 operating expenses were $8.4 million
as compared to $5.8 million in the prior year period. Research
and development expenses were $6.3 million for the three months
ended June 30, 2007 as compared to $4.0 million for the second
quarter of 2006. The increase in research and development
expenses for the second quarter of 2007 compared with the same
period in 2006 is principally due to increased expenses
associated with our clinical program in diabetic neuropathy and
pre-IND programs to develop ZFP Therapeutics for the treatment
of HIV/AIDS and for glioblastoma. General and administrative
expenses were $2.1 million for the second quarter of 2007 as
compared to $1.8 million for the same period in 2006.
Net interest and other income for the second quarter of 2007 was
$657,000 as compared to $745,000 in the comparable period of
2006.
Recent Highlights
Sangamo raised $30 million
in a registered direct offering to institutional investors.
On July 17, Sangamo announced that it had sold an aggregate
of 3,278,689 shares of common stock, at a price of $9.15 per
share, for gross proceeds of approximately $30.0 million,
before fees and expenses.
Sangamo and Sigma-Aldrich Corporation established a major
alliance to develop and commercialize high value laboratory
research reagents based upon zinc finger DNA-binding protein
(ZFP) technology. Pursuant to the agreement announced on
July 10, Sangamo received an upfront payment of $13.5
million which included license fees and sale of one million
shares of Sangamo stock. Sangamo is also eligible to receive
development and commercial milestone payments and royalties
on product sales.
Positive data from the Phase 1b clinical trial of ZFP
Therapeutic(TM), SB-509, for diabetic neuropathy presented
at the American Diabetes Association Meeting. Clinical
investigator, Mark Kipnes, M.D., presented data from this
study that demonstrate statistically significant
improvements in nerve conduction velocity and quantitative
sensory testing in subjects with mild to moderate diabetic
neuropathy over a six month period after a single
administration of SB-509.
Sangamo received unanimous approval from the National
Institutes of Health Recombinant DNA Advisory Committee
(RAC) for two ZFN Therapeutic programs. Two ZFP nuclease
(ZFN) pre-IND therapeutic programs -- modification of the
CCR5 gene in human primary T-cells for the treatment of
HIV/AIDS and a novel therapy for the treatment of
glioblastoma -- were reviewed and unanimously approved by
the RAC on June 19.
Continued progress in achievement of milestones in
collaboration with Dow AgroSciences. Sangamo and Dow
AgroSciences jointly announced
the successful achievement of research milestones as part of
our joint Research and Commercial License Agreement. The
milestones represent the successful application of Sangamo's
ZFP technology for the generation of specific traits in two
major crop species -- maize and canola.
Sangamo entered into a Research and License Agreement with
Genentech in the area of protein pharmaceutical production.
Under the agreement announced on April 30, Sangamo will
develop ZFNs(TM) designed to make targeted modifications to
the genome of Genentech cell lines for use in mammalian
cell-based protein pharmaceutical production. Genentech has
paid Sangamo an upfront fee, and will pay an ongoing
technology access fee and certain payments upon achievement
of specified milestones relating to the research of ZFNs and
the development and commercialization of products
manufactured using a modified cell line created by ZFN
technology.
Initiation of Phase 2 clinical trial of SB-509 in subjects
with moderate to severe diabetic neuropathy (DN) or "blocked
nerves". Sangamo announced the initiation of a second Phase
2 clinical trial; a randomized, single-blind,
placebo-controlled, repeat-dosing study designed to evaluate
the clinical safety and clinical effects of repeat
administration of SB-509 in diabetic subjects that have
"blocked nerves," or unmeasurable nerve conduction velocity
(NCV), in at least
one of the nerves in the leg.
Six-Month Results
For the six-month period ended June 30, 2007 the consolidated
net loss was $10.5 million, or $0.30 per share, compared with a
consolidated net loss of $6.1 million, or $0.20 per share, in
the comparable period in 2006. Revenues for the first six months
of 2007 were $4.0 million as compared to $3.9 million in the
same period of 2006. Total operating expenses for the six months
ended June 30, 2007 and 2006 were $15.9 million and $11.2
million, respectively.
Full report in PDF format
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 effects 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, ischemic heart 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 therapeutic gene modification as a
treatment for a variety of monogenic diseases, such as X-linked
SCID and hemophilia, and for infectious diseases, such as HIV.
Research at Sangamo is partially funded by an Advanced
Technology Program (ATP) grant awarded by the National Institute
of Standards and Technology (NIST). Sangamo has established
several Enabling Technology Agreements with companies to apply
its ZFP Technology to enhance the production of protein
pharmaceuticals. |
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