Exhibit 99.1
SANGAMO BIOSCIENCES REPORTS 2005 THIRD QUARTER FINANCIAL RESULTS
AND RECENT HIGHLIGHTS
RICHMOND, Calif., Oct. 27 /PRNewswire-FirstCall/ -- Sangamo BioSciences,
Inc. (Nasdaq: SGMO) today reported financial results for the third quarter ended
September 30, 2005. The consolidated net loss was $3.7 million, or $0.14 per
share, as compared to a net loss of $4.6 million, or $0.18 per share, in the
same period of 2004. At September 30, 2005, the company had cash, cash
equivalents, investments and interest receivable of $23.7 million.
Revenues for the third quarter of 2005 were $412,000 as compared to third
quarter 2004 revenues of $172,000. Third quarter 2005 revenues were from
Sangamo's partnerships in the areas of enabling technologies, human
therapeutics, and federal government research grants.
Total third quarter 2005 operating expenses were $4.2 million as compared to
$4.8 million in the prior year period. Research and development expenses were
$3.2 million for the third quarter of 2005 as compared to $3.8 million for the
third quarter of 2004. General and administrative expenses were $976,000 for the
third quarter of 2005 as compared to $1.1 million for the same period in 2004.
Net interest and other income for the third quarter of 2005 was $125,000 as
compared to $104,000 in the comparable period of 2004.
Nine-Month Results
For the nine-month period ended September 30, 2005 the consolidated net loss
was $10.6 million, or $0.42 per share compared with a consolidated net loss of
$10.8 million, or $0.43 per share, in the comparable period in 2004. Revenues
were $1.1 million in both nine-month periods ended September 30, 2005 and 2004.
Total operating expenses for the nine months ended September 30, 2005 and 2004
were $12.0 million and $12.4 million, respectively.
Recent Highlights
-- Major Agreement in plant agriculture established with Dow AgroSciences.
On October 5, 2005 Sangamo and Dow AgroSciences, LLC, (DAS) a wholly
owned subsidiary of The Dow Chemical Company, announced the signing of a
Research and Commercial License Agreement. The agreement provides Dow
AgroSciences with access to Sangamo's ZFP technology for use in plants
and plant cell cultures to develop products in areas including, on an
exclusive basis, plant agriculture and industrial products, and, on a
non-exclusive basis, animal health and biopharmaceutical products
produced in plants. DAS has made an initial cash payment to Sangamo of
$7.5 million and will purchase up to $4 million of Sangamo common stock
in the next financing transaction meeting certain criteria. In addition,
DAS will provide between $4 and $6 million in research funding over the
initial three-year research term and may make up to an additional $4
million in research milestone payments to Sangamo during this same
period, depending on the success of the research program. In the event
that DAS elects to extend the research program beyond the initial
three-year term, DAS will provide additional research funding. If DAS
exercises its option to obtain a commercial license, Sangamo will be
entitled to a one-time exercise fee of $6 million as well as minimum
annual payments totaling up to $25.25 million, development and
commercialization milestone payments for each product, and royalties on
sales of products. Furthermore, DAS will have the right to sublicense
Sangamo's ZFP technology to third parties for use in plant cells,
plants, or plant cell cultures, and Sangamo will be entitled to twenty
five percent (25%) of any revenue received by DAS under such
sublicenses.
-- Sangamo senior management updated stockholders at the Company's second
Analyst and Investor Briefing. On October 5, 2005, Sangamo provided an
update to the financial community on the status and the latest
developments in several of its ZFP Therapeutics(TM) programs. Dale Ando,
M.D., Vice President of Therapeutic Development and CMO and Philip
Gregory, D. Phil., Senior Director of Research, presented details of
Sangamo's therapeutic programs, specifically the Company's ZFP TF
programs for the potential treatment of diabetic neuropathy (DN),
age-related macular degeneration (AMD) and its ZFN-mediated gene
disruption program for the potential treatment of HIV/AIDS. Edward
Lanphier, Sangamo's president and CEO and David Ichikawa, Senior Vice
President of Business Development, updated the financial community on
Sangamo's business development strategy and provided details of the
recently announced agreement with Dow AgroSciences, LLC. The webcast of
the event can be accessed 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."
-- Second expansion of research collaboration with LifeScan Inc. in area of
regenerative medicine. Sangamo announced the second expansion of its
research collaboration with LifeScan, Inc. to use Sangamo's proprietary
ZFPs to develop therapeutic cell lines as a treatment for diabetes.
LifeScan, a Johnson & Johnson company, is a leading manufacturer of
blood glucose meters. Under the agreement, Sangamo will receive expanded
research funding from LifeScan through 2006.
-- Enabling Technology agreements in protein production announced. In
September, Novo Nordisk A/S and Sangamo announced an agreement that
provides Novo Nordisk with access to Sangamo's proprietary ZFP
technology for evaluation for use in the field of enhanced protein
production. A similar agreement was announced with Novartis in October.
-- Sangamo awarded reseach funding by the Cystic Fibrosis Foundation.
Sangamo has been granted research funding from the Cystic Fibrosis
Foundation as part of an award obtained by collaborator Dr. Eric
Sorscher, M.D., Professor in the Departments of Medicine and Physiology
and Biophysics at the University of Alabama at Birmingham (UAB) and
Director of the Gregory Fleming James Cystic Fibrosis Research Center.
Sangamo will receive research funding over a period of two years to
generate cell lines for use in cystic fibrosis (CF) research using its
ZFP technology.
-- Preclinical animal efficacy data presented from AMD program at ARVO-
sponsored conference. Sangamo scientists presented preclinical animal
efficacy data from the Company's program to develop a ZFP
Therapeutic(TM) for age-related "wet" macular degeneration (AMD) at the
Ocular Cell and Molecular Biology (OCMB) Conference, sponsored by the
Association for Research in Vision and Ophthalmology (ARVO), on
September 10, 2005, in Sarasota, Florida. The study demonstrates the
efficacy of ZFP TF(TM) in an animal model of AMD and was conducted by
researchers at the Wilmer Eye Institute, Johns Hopkins University School
of Medicine.
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 866-277-1184 for domestic callers
and 617-597-5360 for international callers. The passcode for the call is
2553748. 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 October 27,
2005 to 9:00 p.m. PST on November 2, 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 14217837. The webcast
will be available on the Sangamo website for two weeks after the call.
About Sangamo
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 diabetic neuropathy
and peripheral artery disease. Other therapeutic development programs are
focused on macular degeneration, ischemic heart disease, congestive heart
failure, 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 (ZFN(TM)) 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. Sangamo has established
several Enabling Technology Agreements with companies to apply its ZFP
Technology to enhance the production of protein pharmaceuticals. In addition,
Sangamo has a broad exclusive agreement with Dow AgroSciences, LLC, a wholly
owned subsidiary of The Dow Chemical Company, for the application of ZFP TFs and
ZFNs in plant agriculture. Research at Sangamo is partially funded by an
Advanced Technology Program (ATP) grant awarded by the National Institute of
Standards and Technology (NIST). For more information about Sangamo, visit the
company's web site at 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
and therapeutic applications of Sangamo's ZFP technology platform and future
payments that may be received under the agreement with DAS. 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
BioSciences, Inc. 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 Nine months ended
September 30, September 30,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Consolidated Statement of Operations Data:
Total revenues $ 412 $ 172 $ 1,087 $ 1,115
Operating expenses:
Research and development 3,228 3,765 8,737 9,187
General and administrative 976 1,082 3,178 3,179
Total operating expenses 4,204 4,847 11,915 12,366
Loss from operations (3,792) (4,675) (10,828) (11,251)
Interest and other income, net 125 104 228 476
Net loss $ (3,667) $ (4,571) $ (10,600) $ (10,775)
Basic and diluted net loss per
common share $ (0.14) $ (0.18) $ (0.42) $ (0.43)
Shares used in computing basic and
diluted net loss per
common share 25,430 25,168 25,386 25,092
September 30, December 31,
2005 2004
---------------- -------------
(Unaudited)
Condensed Balance Sheet Data:
Cash, cash equivalents, investments,
and interest receivable $ 23,715 $ 33,520
Total assets 24,652 34,725
Total stockholders' equity 22,447 32,377
SOURCE Sangamo BioSciences, Inc.
-0- 10/27/2005
/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/
/Web site: http://www.sangamo.com /
(SGMO)