Sangamo BioSciences Reports Second Quarter 2007 Financial Results
RICHMOND, Calif., July 24 /PRNewswire-FirstCall/ -- 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.
Conference Call and Webcast
Sangamo will host a conference call today at 5:00 p.m. ET, 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 888-802-2278 for domestic callers
and 913-312-1264 for international callers. The passcode for the call is
1436008. Participants may access the live webcast via a link on the Sangamo
BioSciences website in the Investor section
http://investor.sangamo.com/index.cfm under "Events and Presentations". 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 8.00
p.m. ET on July 24, 2007 to July 31, 2007. The conference call replay numbers
for domestic and international callers are 888-203-1112 and 719-457-0820,
respectively. The conference ID number for the replay is 1436008. 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 Form 10-Q and Form 8-K. 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)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Consolidated Statement of Operations
Data
Revenues $ 2,584 $ 1,777 $ 4,006 $ 3,913
Operating expenses:
Research and development 6,309 4,028 11,739 7,617
General and administrative 2,113 1,821 4,112 3,576
Total operating expenses 8,422 5,849 15,851 11,193
Loss from operations (5,838) (4,072) (11,845) (7,280)
Interest income, net 657 745 1,305 1,209
Net loss $(5,181) $(3,327) $(10,540) $(6,071)
Basic and diluted net loss per common
share $ (0.15) $ (0.11) $ (0.30) $ (0.20)
Shares used in computing basic and
diluted net loss per common share 35,136 31,312 35,097 30,959
CONDENSED BALANCE SHEET DATA June 30, Dec. 31,
2007 2006
Cash, cash equivalents, and
investments $44,585 $53,975
Total assets $46,936 $55,780
Total stockholders' equity $39,934 $48,705