Exhibit 99.1
SANGAMO BIOSCIENCES REPORTS 2006 THIRD QUARTER FINANCIAL RESULTS
RICHMOND, Calif., Oct. 30 /PRNewswire-FirstCall/ -- Sangamo BioSciences,
Inc. (Nasdaq: SGMO) today reported financial results for the third quarter
ended September 30, 2006. The consolidated net loss was $2.8 million, or $0.09
per share, as compared to a net loss of $3.7 million, or $0.14 per share, in
the same period of 2005. As of September 30, 2006, the company had cash, cash
equivalents, investments and interest receivable of $57.0 million.
Revenues for the third quarter of 2006 were $1.8 million as compared to
third quarter 2005 revenues of $412,000. Third 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 third quarter of 2006 compared
with 2005 was primarily attributable to revenues from the DAS agreement, which
was entered into in the fourth quarter of 2005.
Total third quarter 2006 operating expenses were $5.4 million as compared to
$4.2 million in the prior year period. Research and development expenses were
$3.9 million for the three months ended September 30, 2006 as compared to $3.0
million for the third quarter of 2005. General and administrative expenses were
$1.6 million for the three months ended September 30, 2006 and $1.2 million for
the third quarter of 2005. The increase in total expenses for the third 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 $565,000 during the third quarter ended September 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 third quarter of 2006 was $798,000 as
compared to $125,000 in the comparable period of 2005.
Recent Highlights
-- Sangamo BioSciences and the Juvenile Diabetes Research Foundation (JDRF)
announced a partnership to provide financial support of Sangamo's Phase 2 human
clinical studies of SB-509. JDRF, the major charitable funding organization of
research leading to a cure for type 1 diabetes and its complications, will
provide up to $3 million toward the Phase 2 clinical trial. The funding will
enable Sangamo to accelerate development of its ZFP Therapeutic, SB-509, for the
treatment of diabetic neuropathy (DN) and conduct additional clinical tests that
may provide important information related to the mechanistic basis for
therapeutic efficacy. SB-509 is a DNA-binding protein transcription factor (ZFP
TF(TM)), designed to upregulate the expression of the gene encoding vascular
endothelial growth factor (VEGF-A). Sangamo has completed a Phase 1a
dose-escalation study and has an ongoing Phase 1b study of SB-509 in subjects
with mild to moderate diabetic neuropathy. Later this year, the company intends
to initiate a double-blind placebo-controlled, multi-treatment Phase 2 study in
diabetics with mild to moderate sensory/motor neuropathy. Preclinical and
clinical data from the SB- 509 program were also presented at the 42nd Annual
Meeting of the European Association for the Study of Diabetes (EASD), held in
Copenhagen, Denmark in September 2006.
-- Sangamo presents data demonstrating that human immune system cells can be
made permanently resistant to HIV infection by treatment with zinc finger
DNA-binding protein nucleases (ZFN(TM)). Sangamo scientists and collaborators
from the University of Pennsylvania made the presentation at the 46th Annual
Interscience Conference on Antimicrobial Agents and Chemotherapy (ICAAC).
Sangamo's ZFNs are designed to permanently modify the DNA sequence encoding
CCR5, a co-receptor that enables HIV to enter and infect cells of the immune
system. The reported results demonstrate that administration of Sangamo's
CCR5-ZFNs to CD4+ T-cells, enabled the generation of a population of CCR5-
modified, HIV resistant cells. ZFN-modified T-cells survived continuous exposure
to HIV and expanded to the point that they represented the vast majority of
cells in the population at the end of the experiment. In addition, plasmid DNA
plus electroporation and adenoviral vectors were evaluated as modes of delivery
of CCR5-specific ZFNs. While both methods support ZFN- mediated CCR5 disruption
of T-cells, adenoviral delivery resulted in a ten- fold increase in
CCR5-modified cells compared with non-viral methods. Researchers at Sangamo and
the University of Pennsylvania are evaluating both delivery methods. Sangamo's
clinical goal is to modify the CCR5 gene in T- cells of HIV-infected individuals
to generate a reservoir of T-cells that is permanently resistant to HIV
infection.
-- Sangamo clinical collaborator presented data demonstrating the positive
effects of ZFP TF treatment in a spinal cord injury model. Clinical
collaborator, Michael Fehlings, M.D., Ph.D. presented preclinical data from
Sangamo's ZFP Therapeutic(TM) program in nerve regeneration at the 2006 Annual
Meeting of The Society for Neuroscience. Dr. Fehlings holds the Krembil Chair in
Neural Repair and Regeneration at the Toronto Western Research Institute and
University of Toronto, Ontario, Canada, is a Christopher Reeve Foundation
Scientific Advisory Council member and a leading expert in the molecular
mechanisms and treatment of spinal cord injury (SCI). The data demonstrate that
treatment of the spinal cord at the time of injury with a VEGF-activating ZFP TF
had a statistically significant effect on a number of measures of nerve
integrity and health in an animal model of SCI. After administration of the ZFP
TF to the spinal cord, scientists were able to measure increased levels of the
three major isoforms of the VEGF-A protein that resulted in a neuroprotective
effect. Specifically, they observed a statistically significant decrease in
nerve fiber degradation and post-injury nerve cell death. In collaboration with
Dr. Fehlings, Sangamo is evaluating the ZFP TF, designed to upregulate the
expression of the gene encoding VEGF-A, in nerve crush and SCI models. VEGF has
been demonstrated to have direct neurotrophic and neuroprotective properties in
several models that assess nerve integrity and health.
-- Michael Gilman, Ph.D., was appointed to Sangamo's Scientific Advisory
Board. Dr. Gilman is currently President and CEO of Stromedix, Inc. and most
recently served as Executive Vice President of Research at Biogen Idec, Inc.
Prior to joining Biogen Idec, Dr. Gilman served as Executive Vice President and
Chief Scientific Officer of Ariad Pharmaceuticals Inc.
Nine-Month Results
For the nine-month period ended September 30, 2006 the consolidated net loss
was $8.9 million, or $0.28 per share, compared with a consolidated net loss of
$10.6 million, or $0.42 per share, in the comparable period in 2005. Revenues
for the nine months ended September 30, 2006 were $5.7 million as compared to
$1.1 million in the same period of 2005. Total expenses for the nine months
ended September 30, 2006 and 2005 were $16.6 million and $11.9 million,
respectively.
Conference Call and Webcast
Sangamo will host a conference call today at 2:00 p.m. PT, 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 888-873-4896 for domestic callers
and 617-213-8850 for international callers. The passcode for the call is
38387340. 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. PT on October 30,
2006 to 9:00 p.m. PT on November 6, 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 60562367. 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 1
clinical trials for evaluation of safety in patients with diabetic neuropathy
and peripheral artery disease. Other therapeutic development programs are
focused on ischemic heart disease, neuropathic pain, cancer 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 X- linked SCID and hemophilia, 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 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)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Consolidated Statement
of Operations Data:
Revenues $ 1,779 $ 412 $ 5,692 $ 1,087
Operating expenses:
Research and development 3,853 2,988 11,470 8,210
General and
administrative 1,569 1,216 5,145 3,705
Total operating
expenses 5,422 4,204 16,615 11,915
Loss from operations (3,643) (3,792) (10,923) (10,828)
Interest income, net 798 125 2,007 228
Net loss $ (2,845) $ (3,667) $ (8,916) $ (10,600)
Basic and diluted
net loss per
common share $ (0.09) $ (0.14) $ (0.28) $ (0.42)
Shares used in
computing basic
and diluted net loss
per common share 30,714 25,430 31,960 25,386
September 30, Dec. 31,
CONDENSED BALANCE SHEET DATA 2006 2005
- ---------------------------------- -------------- --------------
Cash, cash equivalents,
and investments $ 56,990 $ 47,174
Total assets 58,299 48,983
Total stockholders' equity 50,935 37,814
SOURCE Sangamo BioSciences, Inc.
-0- 10/30/2006
/CONTACT: Elizabeth Wolffe of Sangamo BioSciences, Inc., Ph.D.,
+1-510-970-6000, ext. 271, or ewolffe@sangamo.com; or media, Justin Jackson of
Burns McClellan, Inc., +1-212-213-0006/
/Web site: http://www.sangamo.com /
(SGMO)