Sangamo Therapeutics (SGMO) Q2 2024 earnings summary

Executive summary

• Announced a global license agreement with Genentech for neurology epigenetic regulators and delivery capsid, expecting $50M in near-term payments and up to $1.9B in milestones and royalties, validating the scientific platform and providing significant funding.

• Reported positive topline Phase 3 AFFINE trial results for Hemophilia A gene therapy with Pfizer, meeting primary and key secondary endpoints, showing strong efficacy and tolerability.

• Advanced Fabry disease gene therapy program with encouraging Phase 1/2 data, including 17 of 18 patients withdrawn from enzyme replacement therapy and improved kidney function.

• Ongoing restructuring, including wind-down of France operations and workforce reductions, to reduce costs and focus on neurology.

• Advanced neurology-focused preclinical pipeline, including IND-enabling activities for chronic neuropathic pain and CTA-enabling for prion disease.

Financial highlights

• Expecting $50M in near-term upfront license fees and milestone payments from Genentech, extending cash runway into Q1 2025.

• Eligible for up to $1.9B in development and commercial milestone payments and tiered royalties from Genentech agreement.

• Eligible for up to $220M in milestone payments and 14–20% royalties from Pfizer for Hemophilia A program upon regulatory and commercial milestones.

• Q2 2024 net loss was $36.1M ($0.18/share), improved from $114.5M ($0.66/share) in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were $27.8M, with an additional $50M expected from Genentech.

Outlook and guidance

• Available cash plus expected Genentech payments projected to fund operations into Q1 2025; additional capital required to continue as a going concern.

• Anticipate further cost reductions and operating expense reductions in 2025 as legacy programs transition.

• Ongoing business development discussions for Fabry and neurology programs; seeking additional partners and non-dilutive funding.

• Updated Fabry clinical data and potential partnership announcements expected in coming months.

• Further cost reductions or operational changes may be necessary if funding is not secured.