Exhibit 99.1
SANGAMO BIOSCIENCES REPORTS 2006 FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS
RICHMOND, Calif., Feb. 8 /PRNewswire-FirstCall/ -- Sangamo BioSciences,
Inc. (Nasdaq: SGMO) today reported financial results for the fourth quarter
ended December 31, 2006. Revenues for the fourth quarter of 2006 were $2.2
million as compared to fourth quarter 2005 revenues of $1.4 million. The
principal components of fourth quarter 2006 revenues were from Sangamo's
research agreement with Dow AgroSciences (DAS), research grants and
partnerships in enabling technologies and human therapeutics.
The consolidated net loss was $8.9 million, or $0.26 per share, as
compared to a net loss of $2.7 million, or $0.10 per share, in the same period
in 2005. As of December 31, 2006, the company had cash, cash equivalents, and
investments of $54.0 million.
Total fourth quarter 2006 operating expenses were $12.0 million as
compared to $4.3 million in the prior year period. Research and development
expenses were $10.1 million for the three months ended December 31, 2006 and
$2.7 million for the same period in 2005. Research and development expenses in
the fourth quarter of 2006 were higher than in the same period of 2005 due to
Sangamo's acquisition of the Edwards Lifesciences (Edwards) ZFP Therapeutic
angiogenesis programs, increased expenses relating to our clinical trials
and employee stock-based compensation. In December 2006, Sangamo purchased
Edwards' ZFP Therapeutics programs in exchange for one million shares of
Sangamo common stock and certain royalties, a transaction valued at $5.8
million. General and administrative expenses were $1.9 million for the fourth
quarter of 2006 as compared to $1.6 for the same period in 2005. Total
expenses also included a non-cash charge of $493,000 during the fourth quarter
ended December 31, 2006 for employee stock-based compensation.
Net interest income for the fourth quarter of 2006 was $698,000 as
compared to $293,000 in the comparable period of 2005.
Twelve Month Results
For the year ended December 31, 2006 revenues were $7.9 million as
compared to $2.5 million in 2005. The net loss for the year ending December
31, 2006 was $17.9 million, or $0.55 per share, compared to $13.3 million, or
$0.51 per share, for the year ended December 31, 2005. Total operating
expenses for the years ended December 31, 2006 and 2005 were $28.6 million and
$16.2 million, respectively. Total expenses for the year ended 2006 included
the $5.8 million expense associated with the acquisition of the Edwards ZFP
Therapeutic programs as well as a non-cash charge of $2.0 million for employee
stock-based compensation. As of January 1, 2006 the Company adopted Statement
of Financial Accounting Standards No. 123R and is reporting employee stock-
based compensation expense in its GAAP results.
As of December 31, 2006, the company had cash, cash equivalents, and
investments of $54.0 million, compared with $47.2 million at December 31,
2005. Total shares outstanding at December 31, 2006 were 35.0 million as
compared to 30.6 million at December 31, 2005.
Recent Highlights
-- Initiation of Phase 2 clinical trial of SB-509 for diabetic neuropathy.
In November 2006, Sangamo announced that it had initiated a
multi-center, double-blind, placebo-controlled, Phase 2 clinical trial
of SB-509 for diabetic neuropathy (DN) designed to evaluate the
clinical safety and clinical effects of repeat administration of SB-509
in diabetics with mild to moderate diabetic peripheral sensory motor
neuropathy in the legs. The Juvenile Diabetes Research Foundation
(JDRF) is providing up to $3 million of financial support for the study
payable on achievement of certain milestones. SB-509 is an injectable
formulation of plasmid DNA that encodes a zinc finger DNA-binding
protein transcription factor (ZFP TF(TM)), designed to upregulate the
vascular endothelial growth factor A (VEGF-A) gene.
-- Acquisition of Edwards' ZFP Therapeutic angiogenesis program. In early
December, Edwards and Sangamo announced Sangamo's acquisition of the
Edwards ZFP Therapeutic angiogenesis program that was completed on
December 22, 2006. Edwards transferred the assets of these programs
to Sangamo in exchange for 1 million shares of Sangamo common stock and
royalties on certain Sangamo products commercialized in the
future based upon ZFP activation of the VEGF gene. In addition to
acquiring two clinical stage programs in peripheral artery disease
(PAD), a pre-clinical program in ischemic heart disease (IHD) and ten
grams of clinical grade drug, the agreement enables coordinated
implementation of Sangamo's future clinical trials and corporate
partnering opportunities. Future clinical development plans for these
assets will be discussed on today's conference call.
-- Achievement of first milestones in agreement with Dow AgroSciences
(DAS). In November 2006, DAS and Sangamo announced the successful
completion of multiple research milestones as part of their Research
and Commercial License Agreement initiated October 2005.
-- Michael J. Fox Foundation for Parkinson's Research (MJFF) awards
Sangamo funds to develop novel ZFP Therapeutic for the treatment of
Parkinson's disease (PD). The $950,000 grant, which will be paid over a
period of two years will be used to develop ZFP TFs to activate the
expression of glial cell line-derived neurotrophic factor (GDNF), a
potent neurotrophic factor that has shown promise in preclinical
testing to slow or stop the progression of Parkinson's disease. Use of
a ZFP TF to activate the GDNF gene in the brain -- as compared to
addition of a GDNF cDNA or the recombinant protein -- may allow the
delivery of a more physiologically relevant dose of the growth factor.
This may be of particular significance when targeting potent natural
growth factors such as GDNF, where sufficient but not super-
physiological levels of the therapeutic protein may be required to
achieve potency with safety.
-- Sangamo and City of Hope (COH) announce license agreement and research
collaboration to develop a treatment for brain cancer. Sangamo entered
into an exclusive, worldwide license agreement with COH for
intellectual property related to a chimeric immunoreceptor useful in
treating human cancers. Sangamo and COH also entered into a research
collaboration to develop a novel cell therapy combining the licensed
technology with Sangamo's proprietary zinc finger DNA-binding protein
nuclease (ZFN(TM)) technology for treatment of glioblastoma multiforme
(GM), a progressive and usually fatal brain cancer. Sangamo expects to
file an IND for this program with the U.S. FDA in the second half of
2007.
-- Sangamo hosts Investor and Analyst Briefing. On December 6, 2006,
Sangamo provided an update on its achievements in 2006, its therapeutic
programs, progress in its collaboration with Dow AgroSciences and its
objectives for 2007 during its annual Investor and Analyst Briefing
held in New York. The event was webcast and the replay is available on
Sangamo's website at
http://phx.corporate-ir.net/phoenix.zhtml?c=120938&p=irol-IRHome
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 live 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. The webcast
replay will also be available for 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 2007.
The conference call dial-in numbers are 800-884-5695 for domestic callers
and 617-786-2960 for international callers. The passcode for the call is
40519160. 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 8, 2007 to 9:00 p.m. PT on February 15,
2007. 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 56441862.
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 program is currently in a
Phase 2 clinical trial for evaluation of safety in patients with diabetic
neuropathy. Phase 1 clinical trials are ongoing to evaluate a ZFP Therapeutic
for 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. For more
information about Sangamo, visit the company's web site at
http://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,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Consolidated Statement
of Operations Data:
Revenues $ 2,193 $ 1,397 $ 7,885 $ 2,484
Operating expenses:
Research and
development 10,057 2,699 21,527 10,909
General and
administrative 1,942 1,618 7,087 5,323
Total operating
expenses 11,999 4,317 28,614 16,232
Loss from operations (9,806) (2,920) (20,729) (13,748)
Interest income, net 698 293 2,411 850
Other income/(expense) 160 (65) 454 (395)
Net loss $ (8,948) $ (2,692) $ (17,864) $ (13,293)
Basic and diluted net
loss per common share $ (0.26) $ (0.10) $ (0.55) $ (0.51)
Shares used in computing
basic and diluted net
loss per common share 34,098 27,245 32,502 25,855
CONDENSED BALANCE SHEET DATA
Dec. 31, Dec. 31,
2006 2005
------------ -------------
Cash, cash equivalents,
and investments $ 53,975 $ 47,174
Total assets 55,780 48,983
Total stockholders'
equity 48,705 37,814
SOURCE Sangamo BioSciences, Inc.
-0- 02/08/2007
/CONTACT: Elizabeth Wolffe, Ph.D. of Sangamo BioSciences, Inc.,
+1-510-970-6000, ext. 271; or media, Justin Jackson of Burns McClellan, Inc.,
+1-212-213-0006, for Sangamo BioSciences/
/Web site: http://www.sangamo.com/