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Dec 31, 2019

Sangamo Q4 2019 Earnings Report

Reported consolidated net income and revenue increase driven by milestone payments.

Key Takeaways

Sangamo Therapeutics reported a net income of $4.6 million for Q4 2019, a significant turnaround from the $18.7 million net loss in the same period of 2018. Revenue also increased to $54.9 million, driven by milestone payments from Pfizer and Sanofi.

Transferred IND for SB-525 hemophilia A gene therapy to Pfizer, triggering a $25 million milestone payment.

Achieved $7.5 million milestone from Sanofi for first patient dosed in sickle cell disease trial.

Announced a global collaboration agreement with Biogen to develop and commercialize gene regulation therapies for neurodegenerative diseases.

Received Orphan Drug Designation from the European Medicines Agency for ST-920 for Fabry disease.

Total Revenue
$54.9M
Previous year: $26.8M
+104.4%
EPS
$0.04
Previous year: -$0.18
-122.2%
Gross Profit
$16.5M
Cash and Equivalents
$385M
Free Cash Flow
-$27.6M
Total Assets
$638M

Sangamo

Sangamo

Forward Guidance

Sangamo expects total operating expenses to be in the range of $270 to $285 million in 2020 on a GAAP basis.

Positive Outlook

  • Advancing wholly owned assets, ST-920 gene therapy for Fabry disease and TX200 CAR-Treg cell therapy, in the clinic.
  • Collaborating with Kite on KITE-037, an anti-CD19 allogeneic CAR-T therapy, in a Phase 1/2 clinical trial.
  • Advancing new IND targets in prevalent diseases, including through the Biogen collaboration.
  • Pursuing additional synergistic partnership opportunities.
  • Pfizer plans to commence the registrational study for SB-525 this year.

Challenges Ahead

  • Dependence on the success of clinical trials.
  • Lengthy and uncertain regulatory approval process.
  • Risks related to the initiation, enrollment, and completion of clinical trials.
  • Reliance on partners and third parties to meet obligations.
  • Ability to maintain strategic partnerships and collaborations.