Exhibit 99.1
SANGAMO BIOSCIENCES REPORTS 2005 SECOND QUARTER FINANCIAL RESULTS
RICHMOND, Calif., July 19 /PRNewswire-FirstCall/ -- Sangamo BioSciences,
Inc. (Nasdaq: SGMO) today reported financial results for the second quarter
ended June 30, 2005. The consolidated net loss was $3.4 million, or $0.13 per
share, as compared to a net loss of $3.3 million, or $0.13 per share, in the
same period of 2004. As of June 30, 2005, the company had cash, cash
equivalents, investments and interest receivable of $26.0 million.
Revenues for the second quarter of 2005 were $418,000 as compared to second
quarter 2004 revenues of $132,000. Second quarter 2005 revenues were from
Sangamo's enabling technology research agreements, federal government research
grants and human therapeutics collaborations.
Total second quarter 2005 operating expenses were $3.9 million as compared
to $3.5 million in the prior year period. Research and development expenses were
$2.8 million for the three months ended June 30, 2005 as compared to $2.4
million for the second quarter of 2004. General and administrative expenses were
$1.1 million for each of the three month periods ending June 30, 2005 and June
30, 2004.
Net interest and other income for the second quarter of 2005 was $76,000 as
compared to $135,000 in the comparable period of 2004.
Recent Highlights
-- Sangamo BioSciences announced the initiation of a Phase I clinical trial
of a ZFP Therapeutic(TM), SB-509, for the treatment of diabetic neuropathy. Zinc
finger DNA-binding protein transcription factor (ZFP TF(TM)), SB-509, is a novel
therapeutic designed to protect and stimulate the regeneration of peripheral
nerve function in diabetics suffering from peripheral neuropathy. The
multi-center study is designed to evaluate clinical safety of SB-509 in
diabetics with mild to moderate diabetic peripheral sensory motor neuropathy in
the legs. The trial began in late April with the treatment of the first patient
at the Diabetes and Glandular Disease Clinic in San Antonio, Texas. Currently,
all four centers are open and screening patients. All of the patients
participating will be given treatment in one leg and placebo in the other in a
distribution that targets the major peripheral nerves in the legs and feet.
Patient safety will be monitored throughout the study, and visits at one, two,
three and six months will include neurological examination and
electrophysiological testing. Approximately 12 patients will be treated and the
trial is expected to take approximately 12 months to screen and enroll patients
and 6 months for patient follow-up. Patients interested in participating in this
trial should visit www.clinicaltrials.com or the Sangamo website at
www.sangamo.com.
-- Sangamo's partner Edwards Lifesciences announced the initiation of a
Phase I clinical trial of a ZFP Therapeutic(TM), EW-A-401, for the treatment of
critical limb ischemia. EW-A-401 encodes a ZFP TF that turns on the expression
of all isoforms of the Vascular Endothelial Growth Factor A (VEGF-A). In
preclinical animal models, the compound was shown to be effective in stimulating
the growth of functionally normal blood vessels, increasing blood flow in
ischemic limbs, and protecting ischemic tissue. The principal investigator on
the trial is Brian Annex, M.D., Professor of Medicine and Director of Vascular
Medicine at Duke University Medical Center in Durham, North Carolina. Designed
as a multi-dose, dose-escalation study involving up to 16 patients with 12
months of follow-up, the trial primarily seeks to measure EW-A-401's safety in
treating patients with critical limb ischemia, a severe form of peripheral
artery disease (PAD) that can result in amputation and limb loss. In addition,
investigators hope to obtain preliminary data on the therapy's effectiveness in
improving patients' clinical status. EW-A-401 is also currently being tested at
the National Institutes for Health for the treatment of intermittent
claudication, an early symptom of PAD that results in leg muscle pain during
exercise.
-- Sangamo scientists published an article in Nature magazine describing the
use of the Company's ZFP technology to correct genes in human cells. The data
published in an article in the June 2, 2005 issue of Nature magazine demonstrate
the use of the Company's ZFP technology to achieve highly efficient, permanent
correction of a disease-causing gene in primary human cells and represent a
significant advance in the ability to specifically and efficiently modify the
human genome. The issue of Nature also featured a review of Sangamo's work
written by Katherine A. High, M.D., who characterized the work as "a
considerable step towards a successful genetic-engineering approach to treating
human disease." Dr. High is a Howard Hughes Medical Institute Investigator, an
attending Physician in the Hematology Division of The Children's Hospital of
Philadelphia and the past President of the American Society of Gene Therapy
(ASGT). This work provides the scientific foundation for potential therapeutic
approaches for a variety of genetic disorders, such as beta-thalassemia, sickle
cell anemia, and Wiskott-Aldrich syndrome, and infectious diseases, such as
HIV/AIDS.
-- Sangamo scientists and their collaborators made presentations of data at
several scientific and medical conferences. Preclinical data from programs in
therapeutic gene regulation and gene modification and research data from
Sangamo's enabling technology program were presented at the Annual Meetings of
the American Society of Gene Therapy, the European Society for Animal Cell
Technology, the Scientific Sessions of the American Diabetes Association and the
International Society for Stem Cell Research.
-- Steven Mento, Ph.D., was appointed to Sangamo's Board of Directors.
Dr. Mento is the President and CEO of Conatus Pharmaceuticals Inc. He was
formerly CEO of Idun Pharmaceuticals, a company that was recently acquired by
Pfizer Inc. Dr. Mento has over 20 years of experience in research and
development and senior business management functions in companies including
Chiron Viagene, Inc. and Lederle-Praxis Biologicals, a business unit of
American Cyanamid and has unique experience in gene therapy research and
product development. At both Viagene and Idun, Dr. Mento was responsible for
directing the companies' transition from basic research through late-stage
clinical trials. Dr. Mento currently serves on several boards including
Grannus BioSciences, BIO ECS and the advisory boards of several academic
institutions.
Six-Month Results
For the six-month period ended June 30, 2005 the consolidated net loss was
$6.9 million, or $0.27 per share, compared with a consolidated net loss of $6.2
million, or $0.25 per share, in the comparable period in 2004. Revenues for the
first six months of 2005 were $674,000 as compared to $943,000 in the same
period of 2004. Total expenses for the six months ended June 30, 2005 and 2004
were $7.7 million and $7.5 million, respectively.
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 1-800-573-4840 for domestic callers
and 1-617-224-4326 for international callers. The passcode for participants is
70233051. 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. PDT on July 19, 2005
to 9:00 p.m. PDT on July 25, 2005. 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 79352214. 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 programs are currently in Phase I
clinical trials for evaluation of safety in patients with peripheral artery
disease and diabetic neuropathy. Other therapeutic development programs are
focused on ischemic heart disease, congestive heart failure, cancer, neuropathic
pain, and infectious 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 (ZFNs) for therapeutic gene
modification as a treatment for a variety of monogenic diseases, such as sickle
cell anemia, and for infectious diseases, such as HIV. For more information
about Sangamo, visit the company's web site at www.sangamo.com or
www.expressinglife.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 Six months ended
June 30, June 30,
---------------------- ----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Consolidated Statement of
Operations Data:
Total revenues $ 418 $ 132 $ 674 $ 943
Operating expenses:
Research and development 2,811 2,429 5,506 5,422
General and administrative 1,063 1,100 2,204 2,097
Total operating expenses 3,874 3,529 7,710 7,519
Loss from operations (3,456) (3,397) (7,036) (6,576)
Interest and other income, net 76 135 103 372
Net loss $ (3,380) $ (3,262) $ (6,933) $ (6,204)
Basic and diluted net loss per
common share $ (0.13) $ (0.13) $ (0.27) $ (0.25)
Shares used in computing basic and
diluted net loss per common share 25,391 25,128 25,364 25,052
June 30, 2005 December 31, 2004
------------- -----------------
(Unaudited)
Condensed Balance Sheet Data:
Cash, cash equivalents, investments,
and interest receivable $ 26,034 $ 33,520
Total assets 27,347 34,725
Total stockholders' equity 25,931 32,377
/CONTACT: Elizabeth Wolffe, Ph.D. of Sangamo BioSciences, Inc.,
+1-510-970-6000, ext. 271, or ewolffe@sangamo.com, or media, Justin Jackson,
+1-212-213-0006, or investors, John Cummings, +1-415-352-6262, both of Burns
McClellan, Inc., for Sangamo BioSciences, Inc.//Web site: http://www.sangamo.com
/