Sangamo Therapeutics (SGMO) Q1 2025 earnings summary

Executive summary

• Signed exclusive capsid license agreement with Lilly for up to five CNS disease targets, receiving $18 million upfront and eligibility for up to $1.4 billion in milestones and royalties; also entered agreements with Genentech and Astellas for STAC-BBB capsid technology.

• Advanced neurology pipeline, including preparations for ST-503 (chronic neuropathic pain) and ST-506 (prion disease), with clinical trials planned for mid-2025 and mid-2026, and preliminary efficacy data expected in Q4 2026.

• Fabry disease program achieved all 32 patients in the phase 1/2 study completing at least 52 weeks of follow-up, supporting an accelerated approval pathway, with pivotal data readout expected by end of Q2 2025 and BLA submission as early as Q1 2026.

• Ongoing search for commercialization partners for Fabry and Hemophilia A programs after Pfizer collaboration ended in April 2025.

• Substantial doubt remains about ability to continue as a going concern beyond Q3 2025 without additional capital or partnerships.

Financial highlights

• Q1 2025 revenues were $6.4 million, up from $0.5 million in Q1 2024, mainly due to collaboration revenue from Pfizer and Sigma-Aldrich.

• Q1 2025 net loss was $30.6 million ($0.14/share), improved from $49.1 million ($0.27/share) in Q1 2024, reflecting lower R&D and G&A expenses.

• Operating expenses decreased 31% year-over-year to $36.1 million, driven by cost reductions and restructuring.

• Cash and cash equivalents were $25.2 million as of March 31, 2025, with recent equity offerings and upfront payments expected to fund operations into late Q3 2025.

• Raised $23 million through an underwritten direct equity offering and $10.5 million via at-the-market equity in Q1 2025.

Outlook and guidance

• Cash runway, including recent capital raises, extends into late Q3 2025; additional capital is required to fund operations and advance clinical programs.

• Plans to begin patient enrollment for ST-503 in mid-2025 and for ST-506 in mid-2026, with preliminary efficacy data for both expected in Q4 2026.

• Fabry pivotal data readout expected by end of Q2 2025; BLA submission as early as Q1 2026, contingent on funding and partnership.

• Additional cost-saving measures and business realignment planned to maximize efficiency and focus on neurology programs.

• Ongoing business development discussions for STAC-BBB, zinc finger, and MINT platforms, and search for new partners for Hemophilia A.