Exhibit 99.1
SANGAMO BIOSCIENCES REPORTS 2005 FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS
RICHMOND, Calif., Feb. 9 /PRNewswire-FirstCall/ -- Sangamo BioSciences, Inc.
(Nasdaq: SGMO) today reported financial results for the fourth quarter ended
December 31, 2005. The consolidated net loss was $2.7 million, or $0.10 per
share, as compared to a net loss of $3.0 million, or $0.12 per share, in the
same period in 2004. As of December 31, 2005, the company had cash, cash
equivalents, and investments of $47.2 million that includes net proceeds of
$18.2 million received from the sale of 5,080,000 shares of common stock in a
registered direct offering in November 2005.
Revenues for the fourth quarter of 2005 were $1.4 million as compared to
fourth quarter 2004 revenues of $200,000. The principal components of fourth
quarter 2005 revenues were from Sangamo's research agreement with Dow
AgroSciences (DAS), research grants and partnerships in human therapeutics and
enabling technologies. The increase in revenues for the fourth quarter of 2005
compared with 2004 was principally attributable to revenues from the DAS
agreement and from research grants.
Total fourth quarter 2005 operating expenses were $4.3 million as compared
to $3.6 million in the prior year period. Research and development expenses were
$3.0 million for the three months ended December 31, 2005 and $2.5 million for
the same period in 2004. General and administrative expenses were $1.3 million
for the fourth quarter of 2005 as compared to $1.1 for the same period in 2004.
Net interest income for the fourth quarter of 2005 was $293,000 as compared
to $164,000 in the comparable period of 2004.
Twelve Month Results
For the year ended December 31, 2005 the net loss was $13.3 million, or
$0.51 per share, compared to $13.8 million, or $0.55 per share, for the year
ended December 31, 2004. Revenues for the year ended December 31, 2005 were $2.5
million as compared to $1.3 million in 2004. Total operating expenses for the
years ended December 31, 2005 and 2004 were $16.2 million and $16.0 million,
respectively.
As of December 31, 2005, the company had cash, cash equivalents, and
investments of $47.2 million, compared with $33.5 million at December 31, 2004.
Total shares outstanding at December 31, 2005 were 30.6 million as compared to
25.3 million at December 31, 2004.
Recent Highlights
-- Sangamo closed a registered direct offering to institutional and
strategic investors. In November 2005, Sangamo announced that it had sold
5,080,000 shares of common stock, resulting in net proceeds to the
company of approximately $18.2 million. DAS purchased approximately 20%
of the shares sold in this financing.
-- Subject enrollment and treatment completed in Sangamo's Phase 1 study of
SB-509 in subjects with mild to moderate diabetic neuropathy. Sangamo
expects to announce results from this study in the first half of 2006 at
the American Academy of Neurology meeting in April and the American
Diabetes meeting in June and to initiate a Phase 2 clinical study in the
second half of 2006. SB-509 is a novel ZFP Therapeutic(TM) designed to
upregulate the expression of the patient's own vascular endothelial
growth factor (VEGF) gene to protect and stimulate the regeneration of
peripheral nerve function in diabetics suffering from peripheral
neuropathy.
-- Major agreement in plant agriculture established with Dow AgroSciences.
On October 5, 2005 Sangamo and Dow AgroSciences, LLC, (DAS) announced the
signing of a Research and Commercial License Agreement. The agreement
provides DAS with access to Sangamo's zinc finger DNA-binding protein
(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 made an initial cash
payment to Sangamo of $7.5 million and purchased approximately $4.0
million of Sangamo common stock in the registered direct offering that
was completed in November 2005. In addition, DAS will provide between
$4.0 and $6.0 million in research funding over the initial three-year
research term and may make up to an additional $4.0 million in research
milestone payments to Sangamo during this same period, depending on the
success of the research program. If DAS exercises its option to obtain a
commercial license, Sangamo will be entitled to a one-time exercise fee
of $6.0 million as well as 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.
-- Data from Sangamo's program to develop a ZFP Therapeutic for the
treatment HIV/AIDS were presented at the 45th Annual Interscience
Conference on Antimicrobial Agents and Chemotherapy (ICAAC). The study
represents the first demonstration that cells can be made resistant to
HIV infection by treatment with Sangamo's proprietary ZFP nucleases
(ZFN(TM)) designed to specifically disrupt the CCR5 gene that encodes a
receptor required for HIV entry into immune cells. The researchers found
that ZFN-modified cells were resistant to HIV infection whereas control
cells were infected when challenged with the virus. Furthermore, when
CCR5 expression was experimentally restored in the ZFN-modified cells,
HIV was once again able to infect these cells demonstrating the
specificity of the approach. Sangamo has shown disruption of the CCR5
gene in a number of different cell types including T-cells, the target
cell for this therapeutic approach. At the recent Conference for
Retroviruses and Opportunistic Infections (CROI) Sangamo's clinical
collaborator also presented data demonstrating that ZFN-modified cells
were able to survive and grow in culture in conditions where they were
exposed to the virus for prolonged periods.
Preclinical data were also presented at the Scientific Sessions of the
American Heart Association (AHA) from Sangamo's program to develop a ZFP
Therapeutic(TM) for congestive heart failure (CHF) and at the 8th
International Conference on the Mechanisms and Treatment of Neuropathic
Pain from its program neuropathic pain.
-- Sangamo announced an expansion of the scope of its research collaboration
with Pfizer Inc in the field of enhanced protein production. Under the
terms of the agreement, Pfizer will fund further research at Sangamo and
Sangamo will use its ZFP technology to develop additional cell lines for
enhanced protein production.
Conference Call
Sangamo will host a conference call today at 5:00 p.m. EST, which will be
open to the public. The call will also be webcast and can be accessed via a link
on the Sangamo BioSciences website in the Investor Relations section under
"Company Overview"
http://phx.corporate-ir.net/phoenix.zhtml?c=120938&p=irol-IRHome for up to two
weeks after the call. During the conference call, the company will review these
results, discuss other business matters, and provide forward-looking guidance
with respect to 2006.
The conference call dial-in numbers are 866-272-9941 for domestic callers
and 617-213-8895 for international callers. The passcode for the call is
52150700. 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 February 9, 2006 to 9:00 p.m. PT on February 16,
2006. 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 12829030.
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 TherapeuticTM development programs are currently in Phase 1
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. 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 contains forward-looking statements regarding Sangamo's
current expectations. These statements are not guarantees of future performance
and are subject to certain risks, uncertainties and assumptions that are
difficult to predict. Factors that could cause actual results to differ include
the early stage of ZFP Therapeutic development, uncertainties related to the
timing of initiation and completion of clinical trials, and whether clinical
trial results will validate and support the safety and efficacy of ZFP
Therapeutics. Further, there can be no assurance that the necessary regulatory
approvals will be obtained or that Sangamo will be able to develop commercially
viable gene based therapeutics. Actual results may differ from those projected
in forward-looking statements due to risks and uncertainties that exist in the
company's operations and business environments. These risks and uncertainties
are described more fully in the company's' Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q as filed with the Securities and Exchange
Commission. Forward-looking statements contained in this announcement are made
as of this date and will not be updated.
SELECTED FINANCIAL DATA
(in thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
CONSOLIDATED STATEMENT OF
OPERATIONS DATA:
Revenues $ 1,399 $ 200 $ 2,484 $ 1,315
---------- ---------- ---------- ----------
Operating expenses:
Research and development 2,982 2,510 11,719 11,695
General and administrative 1,335 1,090 4,513 4,270
---------- ---------- ---------- ----------
Total operating expenses 4,317 3,600 16,232 15,965
---------- ---------- ---------- ----------
Loss from operations (2,918) (3,400) (13,748) (14,650)
Interest income, net 293 164 850 620
Other income (65) 193 (395) 212
---------- ---------- ---------- ----------
Net loss $ (2,690) $ (3,043) $ (13,293) $ (13,818)
========== ========== ========== ==========
Basic and diluted net loss per
common share $ (0.10) $ (0.12) $ (0.51) $ (0.55)
Shares used in computing basic
and diluted net loss per common
share 27,245 25,226 25,855 25,126
========== ========== ========== ==========
CONDENSED BALANCE SHEET DATA
Dec. 31, 2005 Dec. 31, 2004
------------- -------------
Cash, cash equivalents, and investments $ 47,174 $ 33,520
Total assets 48,983 34,725
Total stockholders' equity 37,813 32,377
SOURCE Sangamo BioSciences, Inc.
-0- 02/09/2006
/CONTACT: Elizabeth Wolffe, Ph.D., of Sangamo BioSciences, Inc.,
+1-510-970-6000, ext. 271; or Justin Jackson (media) of Burns McClellan, Inc.,
+1-212-213-0006, for Sangamo BioSciences, Inc./
/First Call Analyst: /
/FCMN Contact: /
/Web site: http://www.sangamo.com /
(SGMO)