Sangamo Therapeutics (SGMO) Q3 2024 earnings summary

Executive summary

• Achieved a global license agreement with Genentech for epigenetic regulation and capsid delivery, receiving $50 million upfront and milestone payments, with eligibility for up to $1.9 billion in future milestones and royalties.

• Secured clear FDA regulatory alignment for Accelerated Approval of Fabry disease therapy, expediting potential approval by three years.

• Advanced hemophilia A program with Pfizer, with positive Phase 3 AFFINE trial results and eligibility for up to $220 million in milestones and 14–20% royalties.

• Submitted IND for ST-503 (intractable pain/neuropathy), with clinical trial expected to start mid-2025; prion disease program advancing toward CTA submission in Q4 2025.

• Focused on advancing genomic medicines for neurological diseases using zinc finger epigenetic regulation and proprietary AAV capsid delivery platforms.

Financial highlights

• Q3 2024 revenues were $49.4 million, up from $9.4 million in Q3 2023, mainly due to Genentech collaboration; net income was $10.7 million compared to a net loss of $104.2 million in Q3 2023.

• Cash and cash equivalents as of September 30, 2024, were $39.2 million, with an additional $10 million milestone received in October; cash runway extends into Q1 2025.

• Non-GAAP operating expenses for Q3 2024 were $34.2 million, down ~44% year-over-year; 2024 OpEx guidance of $125–$145 million, assuming additional funding.

• $867 million cash received from partners to date; up to $3.8 billion in potential future milestones and fees.

• Revenue for the first nine months of 2024 was $50.2 million, down from $174.2 million year-over-year due to terminated collaborations.

Outlook and guidance

• BLA submission for Fabry disease anticipated in H2 2025, contingent on funding; expects top-line Fabry data in 1H 2025.

• Phase 1/2 study for ST-503 expected to start mid-2025, pending IND clearance and funding; prion disease CTA submission anticipated in Q4 2025.

• Anticipates further OpEx reductions in 2025 as legacy programs wind down.

• Actively seeking additional capital through equity, debt, royalty financing, or new collaborations; failure to secure funding may require further cost reductions or cessation of operations.