Sangamo BioSciences Reports First Quarter 2007 Financial Results
RICHMOND, Calif., May 1 /PRNewswire-FirstCall/ -- Sangamo BioSciences, Inc.
(Nasdaq: SGMO) today reported financial results for the quarter ended March 31,
2007. The consolidated net loss was $5.4 million, or $0.15 per share, as
compared to a net loss of $2.7 million, or $0.09 per share, in the same period
of 2006. At March 31, 2007, the company had cash, cash equivalents, investments
and interest receivable of $49.0 million.
Revenues for the first quarter of 2007 were $1.4 million as compared to
first quarter 2006 revenues of $2.1 million. First quarter 2007 revenues were
from Sangamo's partnerships in the areas of plant agriculture, federal
government and private foundation research grants and enabling technologies.
Total first quarter 2007 operating expenses were $7.4 million as compared to
$5.3 million in the prior year period. Research and development expenses were
$5.4 million for the three months ended March 31, 2007 as compared to $3.6
million for the first quarter of 2006. The increase in research and development
expenses for the first 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 $2.0 million for the first quarter of 2007 as compared to $1.8 million for
the same period in 2006.
Net interest and other income for the first quarter of 2007 was $648,000 as
compared to $464,000 in the comparable period of 2006.
Recent Highlights
o Initiation of Phase 2 clinical trial of SB-509 in subjects with moderate
to severe diabetic neuropathy (DN) or "blocked nerves". On April 26, 2007
we announced the initiation of our 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. SB-509 is an injectable formulation of plasmid DNA
that encodes a zinc finger DNA-binding protein transcription factor (ZFP
TF(TM)), designed to upregulate the vascular endothelial growth factor A
(VEGF-A) gene. Sangamo also has an ongoing Phase 2 clinical trial of
SB-509 in subjects with mild to moderate DN.
o Sangamo enters into a research and license agreement with Genentech in
the area of protein pharmaceutical production. Under the agreement,
Sangamo will develop ZFP nucleases ZFNs(TM) designed to make targeted
modifications to the genome of Genentech cell lines for use in mammalian
cell-based protein pharmaceutical production. Genentech will pay Sangamo
an upfront fee, 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.
o Michael J. Fox Foundation for Parkinson's Research awarded Sangamo a
$950,000 dollar research grant. The grant will fund the development of a
ZPF transcription factor activator of glial-derived neurotrophic factor
or GDNF for the treatment of Parkinson's disease. GDNF is a potent
neurotrophic factor that has shown promise in preclinical testing to slow
or stop the progression of Parkinson's disease.
Conference Call and Webcast
Sangamo will host a conference call today at 2:00 p.m. PDT, which will be
open to the public via telephone and webcast. During the conference call, the
company will review the financial results and discuss other business matters.
The conference call dial-in numbers are 866-700-6067 for domestic callers
and 617-213-8834 for international callers. The passcode for the call is
26097538. Participants may access the live webcast via a link on the Sangamo
BioSciences website
http://phx.corporate-ir.net/phoenix.zhtml?c=120938&p=irol-IRHome in the Investor
Relations section under "Company Overview." For those unable to listen in at the
designated time, a conference call replay will be available for one week
following the conference call, from approximately 4:00 p.m. PT on May 1, 2007 to
9:00 p.m. PT on May 8, 2007. The conference call replay numbers for domestic and
international callers are 888-286-8010 and 617-801-6888 respectively. The
conference ID number for the replay is 87082877. The webcast will be available
on the Sangamo website for two weeks after the call.
About Sangamo BioSciences, Inc.
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. For
more information about Sangamo, visit the company's web site at
http://www.sangamo.com/.
This press release may contain forward-looking statements based on Sangamo's
current expectations. These forward-looking statements include, without
limitation, references to the research and development of novel ZFP TFs and
ZFNs, clinical trials and therapeutic applications of Sangamo's ZFP technology
platform. Actual results may differ materially from these forward- looking
statements due to a number of factors, including technological challenges,
Sangamo's ability to develop commercially viable products and technological
developments by our competitors. See the company's SEC filings, and in
particular, the risk factors described in the company's Annual Report on Form
10-K and its most recent 10-Q. Sangamo assumes no obligation to update the
forward-looking information contained in this press release.
SELECTED FINANCIAL DATA
(in thousands, except per share data)
(unaudited)
Quarter Ended March 31,
2007 2006
Consolidated Statement of Operations Data:
Total revenues $ 1,422 $ 2,136
Operating expenses:
Research and development 5,430 3,589
General and administrative 1,999 1,755
Total operating expenses 7,429 5,344
Loss from operations (6,007) (3,208)
Interest and other income, net 648 464
Net loss $(5,359) $(2,744)
Basic and diluted net loss per common share $ (0.15) $ (0.09)
Shares used in computing basic and diluted
net loss per common share 35,057 30,600
March 31, December 31,
2007 2006
(Unaudited)
Condensed Balance Sheet Data:
Cash, cash equivalents, investments, and
interest receivable $49,008 $53,975
Total assets 50,547 55,780
Total stockholders' equity 43,955 48,705
SOURCE Sangamo BioSciences, Inc.
CONTACT: Elizabeth Wolffe, Ph.D. of Sangamo BioSciences, Inc.,
+1-510-970-6000, ext. 271, or ewolffe@sangamo.com; or media, Justin Jackson of
Burns McClellan, Inc., +1-212-213-0006, for Sangamo/
Web site: http://www.sangamo.com