Exhibit 99.1
SANGAMO BIOSCIENCES, INC.
Point Richmond Tech Center
501 Canal Boulevard
Richmond, CA 94804
510-970-6000 o 510-236-8951(Fax)
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SANGAMO BIOSCIENCES REPORTS 2006 SECOND QUARTER FINANCIAL RESULTS
RECENT FINANCING BRINGS CASH POSITION TO $59.3 MILLION
Richmond, Calif. - July 25, 2006 - Sangamo BioSciences, Inc. (Nasdaq: SGMO)
today reported financial results for the second quarter ended June 30, 2006. The
consolidated net loss was $3.3 million, or $0.11 per share, as compared to a net
loss of $3.4 million, or $0.13 per share, in the same period of 2005. As of June
30, 2006, the company had cash, cash equivalents, investments and interest
receivable of $59.3 million.
Revenues for the second quarter of 2006 were $1.8 million as compared to second
quarter 2005 revenues of $418,000. Second quarter 2006 revenues were from
Sangamo's agreement with Dow AgroSciences (DAS), federal government research
grants, enabling technology research agreements, and human therapeutics
collaborations. The increase in revenues for the second quarter of 2006 compared
with 2005 was primarily attributable to revenues from the DAS agreement.
Total second quarter 2006 operating expenses were $5.8 million as compared to
$3.9 million in the prior year period. Research and development expenses were
$4.0 million for the three months ended June 30, 2006 as compared to $2.8
million for the second quarter of 2005. General and administrative expenses were
$1.8 million for the three-month period ending June 30, 2006 and $1.1 million
for the second quarter of 2005. The increase in total expenses for the second
quarter of 2006 was attributable to increased external development expenses,
primarily associated with manufacturing costs for the Company's upcoming Phase 2
clinical trial, increased personnel and lab supply expenses primarily due to
increased head count in the research and development departments and increased
professional service-related expenses. Total expenses also included a non-cash
charge of $494,000 during the second quarter ended June 30, 2006 for employee
stock-based compensation. As of January 1, 2006 the Company has adopted
Statement of Financial Accounting Standards No. 123R and is reporting
employee-stock based compensation expense in our GAAP results.
Net interest and other income for the second quarter of 2006 was $745,000 as
compared to $76,000 in the comparable period of 2005.
RECENT HIGHLIGHTS
o Sangamo BioSciences presented the first data from a human clinical
trial of a ZFP Therapeutic(TM), SB-509, for the treatment of diabetic
neuropathy. Data from Sangamo's Phase 1a/1b studies were presented at
the 58th Annual Meeting of the American Academy of Neurology in April
and the 66th Scientific Sessions of the American Diabetes Association
Meeting in June. The results are the first publicly reported data from
a human clinical trial of a ZFP Therapeutic and demonstrate that a
single treatment of SB-509 was well tolerated and that no drug-related
severe adverse events (SAEs) were observed. Injection site reactions
were the most common adverse events reported and were mild and
reversible. Importantly, subjects in the Phase 1b study and in the top
dose cohorts of the Phase 1a trial were treated within the
pharmacologically effective dose range that was demonstrated to be
efficacious in preclinical animal studies. When the initial Phase 1b
data were analyzed, clinicians also observed anecdotal improvement in
symptoms as measured by the total neuropathy score or TNS, a composite
score of nerve function.
In the Phase 1a single blind dose escalation study which is complete,
twelve subjects were administered a single treatment of SB-509 in one
leg and placebo in the other. The Phase 1b study is ongoing. Subjects
are randomized and administered either SB-509 or placebo in both legs
at a single visit. As in the Phase 1a study, participants are being
monitored for clinical and laboratory safety as well as evaluation of
pain and clinical effects on lower limb diabetic neuropathy at one,
two, three and six months post-treatment. Data from the Phase 1
studies will be presented later this year at appropriate scientific
and clinical meetings. The 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.
o Sangamo closed an offering of common stock with net proceeds to the
company of $20.15 million. In June 2006, Sangamo announced that it had
sold 3,100,000 shares of common stock at $6.75 per share, resulting in
net proceeds to the company of approximately $20.15 million. Sangamo
intends to use the proceeds from the financing to continue the
development of its ZFP Therapeutic product candidates and research
programs and for other general corporate purposes. Piper Jaffray & Co.
acted as the sole underwriter for this offering.
o Sangamo scientists and their collaborators presented preclinical data
at several scientific and medical conferences. Preclinical data from
Sangamo's programs in therapeutic gene regulation and gene
modification and research data from the Company's enabling technology
program were presented at several meetings including the Annual
Meetings of the Association for Research in Vision and Ophthalmology
(ARVO) and the American Society of Gene Therapy, as well as at a
Keystone Symposium "Pain Mechanisms and the Development of
Analgesics".
o On June 30 2006, Sangamo BioSciences was added to the Russell 3000 and
the Russell 2000 indexes. The Russell family of U.S. indexes ranks as
the most widely used set of U.S. equity performance benchmarks among
institutional investment products.
o H. Ward Wolff was appointed to Sangamo's Board of Directors. Mr. Wolff
is Senior Vice President, Finance and Chief Financial Officer of
Nuvelo, Inc. and most recently served as Chief Financial Officer and
Senior Vice President, Finance, of Abgenix, Inc. until April 2006 when
Abgenix was merged with Amgen Inc. Prior to joining Abgenix, Mr. Wolff
served in senior financial positions with QuantumShift, DoubleTwist,
Inc. and Premenos Technology Corporation. Previously, Mr. Wolff held
positions with Price Waterhouse, as a certified public accountant,
including Senior Audit Manager. Mr. Wolff will serve as chairman of
Sangamo's Audit Committee. Jon E. M. Jacoby, who has served as a
member of the board since April 2000, retired at the time of the
annual stockholder's meeting, June 6, 2006.
SIX-MONTH RESULTS
For the six-month period ended June 30, 2006 the consolidated net loss was $6.1
million, or $0.20 per share, compared with a consolidated net loss of $6.9
million, or $0.27 per share, in the comparable period in 2005. Revenues for the
first six months of 2006 were $3.9 million as compared to $674,000 in the same
period of 2005. Total expenses for the six months ended June 30, 2006 and 2005
were $11.2 million and $7.7 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 1-866-770-7129 for domestic callers and
1-617-213-8067 for international callers. The passcode for participants is
46430212. 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 25, 2006
to 9:00 p.m. PDT on July 31, 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 49916610. 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. 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 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.
CONTACT
Sangamo BioSciences, Inc. Burns McClellan, Inc.
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Elizabeth Wolffe, Ph.D. Justin Jackson (media)
510-970-6000, x271 212-213-0006
ewolffe@sangamo.com
-more-
SELECTED FINANCIAL DATA
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
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2006 2005 2006 2005
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CONSOLIDATED STATEMENT OF OPERATIONS DATA:
Revenues $ 1,777 $ 418 $ 3,914 $ 674
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Operating expenses:
Research and development 4,028 2,811 7,618 5,506
General and administrative 1,821 1,063 3,577 2,204
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Total operating expenses 5,849 3,874 11,195 7,710
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Loss from operations (4,072) (3,456) (7,281) (7,036)
Interest income, net 745 76 1,208 103
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Net loss $ (3,327) $ (3,380) $ (6,073) $ (6,933)
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Basic and diluted net loss per common share $ (0.11) $ (0.13) $ (0.20) $ (0.27)
Shares used in computing basic and diluted net
loss per common share 31,312 25,391 30,959 25,364
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CONDENSED BALANCE SHEET DATA
June 30, Dec. 31,
2006 2005
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Cash, cash equivalents, and investments $ 59,338 $ 47,174
Total assets 60,797 48,983
Total stockholders' equity 53,132 37,814
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