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Sep 30, 2023
Sangamo Q3 2023 Earnings Report
Announced strategic update and reported third quarter 2023 financial results.
Key Takeaways
Sangamo Therapeutics announced progress in its strategic transformation into a neurology-focused genomic medicine company, including restructuring of operations and workforce reduction. They are focusing on epigenetic regulation therapies and novel AAV capsid delivery technologies, while seeking partners for Fabry gene therapy and CAR-Treg cell therapy programs. Q3 2023 revenue was $9.4 million, and the net loss was $104.2 million, or $0.59 per share.
Focusing resources on proprietary epigenetic regulation therapies treating neurological diseases and novel AAV capsid delivery technologies.
Dosed a total of 25 patients in Phase 1/2 STAAR study in Fabry disease, with promising clinical data continuing to emerge.
Actively seeking collaboration partners or direct investors in CAR-Treg cell therapy programs.
Announced planned shutdown of Brisbane headquarters, restructuring of operations, and US workforce reduction of approximately 40%.
Sangamo
Sangamo
Forward Guidance
Sangamo expects GAAP operating expenses to be in the range of $422 million to $442 million for the full year 2023. Non-GAAP operating expenses are estimated to be in the range of $240 million to $260 million. The company believes its cash, cash equivalents, and marketable securities will be sufficient to fund its planned operations into the third quarter of 2024.
Positive Outlook
- Progressed IND enabling activities for the Nav1.7 program to treat chronic neuropathic pain; expect an IND submission in 2024.
- All patients dosed to date in Fabry disease study continue to demonstrate sustained, elevated α-Gal A levels.
- Received all necessary regulatory and ethics approvals for an accelerated dose escalation protocol from European regulatory authorities for CAR-Treg study.
- Pfizer has completed dosing in the Phase 3 AFFINE trial of giroctocogene fitelparvovec, with a pivotal readout expected in mid-2024.
- Cost savings expected from the restructuring, workforce reduction and other potential cost reductions anticipated to reduce annual operating expenses by approximately 50%.
Challenges Ahead
- Deferring additional investments in Phase 3 planning for Fabry disease until collaboration partner or Phase 3 trial funding secured.
- Actively seeking collaboration partners or direct investors in CAR-Treg cell therapy programs and deferring new investments until secured.
- Announced planned shutdown of Brisbane headquarters and restructuring of operations.
- Reducing US workforce by approximately 40%.
- Expects to incur approximately $8 million-$10 million in one-time restructuring costs in the fourth quarter of 2023.