Company Ends Year with Cash and Investments of $81.4 Million
RICHMOND, Calif., Feb. 5 /PRNewswire-FirstCall/ -- Sangamo BioSciences, Inc. (Nasdaq: SGMO) today reported 2007 fourth quarter and year-end financial results and accomplishments and provided an outlook for 2008.
For the fourth quarter ended December 31, 2007, Sangamo reported a consolidated net loss of $6.7 million, or $0.17 per share, compared to a net loss of $8.9 million, or $0.26 per share, for the same period in 2006. As of December 31, 2007, the company had cash, cash equivalents and investments of $81.4 million.
Revenues for the fourth quarter of 2007 were $2.8 million, compared to $2.2 million for the same period in 2006. Fourth quarter 2007 revenues were primarily from Sangamo's agreements with Dow AgroSciences (DAS), Sigma-Aldrich Corporation, research grants and enabling technology agreements in protein production.
Research and development expenses were $7.9 million for the 2007 quarter, compared to $10.1 million for the same period in 2006 which included the one-time costs of Sangamo's acquisition of Edwards Lifesciences' ZFP Therapeutic(TM) angiogenesis program, a transaction valued at $5.8 million of common stock. Excluding the one-time 2006 charge, the increase in research and development expenses for the fourth quarter of 2007 of $3.6 million was primarily due to advancing the Company's clinical development program in diabetic neuropathy and pre-IND programs to develop ZFP Therapeutics for the treatment of HIV/AIDS and glioblastoma, as well as increased R&D personnel costs and lab supply expenses. General and administrative expenses were $2.5 million for the fourth quarter of 2007, compared to $1.9 million for the same period in 2006. Total operating expenses for the fourth quarter of 2007 were $10.4 million, compared to $12.0 million for the same period in 2006.
Net interest and other income was $935,000 for the fourth quarter of 2007, compared to $858,000 for the same period in 2006, primarily due to higher average cash and investment balances.
Full Year Results
For the year ended December 31, 2007, the consolidated net loss was
$21.5 million, or $0.58 per share, compared to a net loss of $17.9 million,
or $0.55 per share, for the year ended December 31, 2006. Revenues were
$9.1 million for 2007, compared to $7.9 million in 2006. Total operating
expenses were $33.9 million in 2007 and $28.6 million in 2006. Operating
expenses in 2006 included the acquisition of the Edwards Lifesciences' ZFP
Therapeutic angiogenesis program, a one-time cost for Sangamo of $5.8
million. The increase in operating expenses for 2007 was primarily
associated with Sangamo's clinical development program in diabetic
neuropathy and pre-IND programs to develop ZFP Therapeutics for the
treatment of HIV/AIDS and glioblastoma, as well as increased R & D
personnel costs and lab supply expenses.
-- Presentation of first clinical data from Phase 1b study of SB-509 in
subjects with diabetic neuropathy (DN). Data from the Phase 1b
clinical trial were presented at the American Diabetes Association
Meeting in June and the Society for Neuroscience Meeting in November.
The data demonstrate statistically significant improvement in
quantitative sensory testing and clinically relevant trends toward
improvement in nerve conduction velocity in subjects with mild to
moderate diabetic neuropathy over a six month period after a single
administration of SB-509. 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.
-- Initiation of additional Phase 2 clinical trials of SB-509 in moderate
to severe DN (SB-509-701) and stem cell mobilization (SB-509-703). In
April, Sangamo announced the initiation of a randomized, single-blind,
placebo-controlled, repeat-dosing Phase 2 study designed to evaluate
the clinical safety and effects of repeat administration of SB-509 in
subjects that have moderate to severe DN (SB-509-701). In January
2008, Sangamo announced that it had initiated a randomized,
single-blind, placebo-controlled, multi-center Phase 2 clinical trial
(SB-509-703) in subjects with mild to moderate DN designed to evaluate
the pharmacokinetics of stem cell mobilization into the bloodstream
after treatment with varying doses of SB-509 as well as the clinical
safety and clinical effects of SB-509 administration.
-- Completion of enrollment of Phase 2 clinical trial of SB-509 for mild
to moderate DN (SB-509-601). In December, Sangamo announced that
enrollment was complete in a randomized, double-blind, repeat-dosing,
placebo-controlled, multi-center trial to evaluate SB-509 for the
treatment of mild to moderate DN. The company expects to have data
from this trial in the second half of 2008.
-- Establishment of major alliance with Sigma-Aldrich Corporation. In
July, as part of an agreement to develop and commercialize high value
laboratory research reagents based upon Sangamo's ZFP technology,
Sangamo received an upfront payment of $13.5 million which included
license fees and the purchase of one million shares of Sangamo stock.
Sangamo is also eligible to receive research funding, development and
commercial milestone payments of up to $24 million and sublicense
payments and royalties on product sales.
-- Achievement of multiple milestones in Dow AgroSciences collaboration.
As part of their joint Research and Commercial License Agreement the
companies achieved milestones that represent the successful
application of Sangamo's ZFP technology to the generation of specific
traits in two major crop species -- maize and canola.
-- Sangamo closed a registered direct offering to institutional
investors. In July, Sangamo sold an aggregate of 3,278,689 shares of
common stock to a group of institutional investors in a registered
direct offering, resulting in gross proceeds to the company of
approximately $30 million before fees and expenses.
-- Appointment of H. Ward Wolff as Executive Vice President and Chief
Financial Officer (CFO). In December 2007, Mr. Wolff joined
Sangamo's senior management team after serving on the Board of
Directors of the Company since June 2006. In this newly created
position, Mr. Wolff oversees the company's administrative, financial
and business development activities and operations.
-- Sangamo hosted an Investor and Analyst Briefing. On December 5,
Sangamo provided an update on its achievements in 2007, its
therapeutic programs, progress in its collaboration with Dow
AgroSciences and its objectives for 2008 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
In today's conference call members of Sangamo's management team will
discuss the company's plans and objectives for 2008 that include:
-- Present additional data from the completed Phase 1b study designed to
evaluate the effect of a single administration of SB-509 in subjects
with mild to moderate DN.
-- Complete follow-up and presentation of data in the second half of the
year from a Phase 2 study (SB-509-601) to evaluate the effects of
SB-509 in subjects with mild to moderate DN.
-- Complete accrual, follow-up and presentation of data from a Phase 2
study (SB-509-701) to evaluate SB-509 in subjects with moderate to
-- Complete accrual and treatment in the recently initiated Phase 2
pharmacokinetic trial (SB-509-703) to evaluate the effect of SB-509 on
stem cell mobilization
-- Initiate a Phase 2 clinical trial to evaluate SB-509 for the treatment
of ALS (Amyotrophic Lateral Sclerosis, also known as "Lou Gehrig's
-- Advance ZFP Therapeutic pipeline by initiating Phase 1 clinical trials
of ZFP Therapeutics for glioblastoma and HIV / CCR5.
-- Present preclinical data in spinal cord injury, stroke, neuropathic
pain and ZFN(TM)-mediated gene modification.
Business -- Strategic Collaborations & Enabling Technology Agreements
-- Pursue strategic partnering in ZFP Therapeutics.
-- Achieve additional research milestones in Dow AgroSciences
collaboration in plant agriculture.
-- Increase visibility and value of ZFNs by developing commercial
research reagents in collaboration with Sigma-Aldrich.
-- Establish new commercial license agreements using ZFNs to improve
cell-lines used in protein production and other biological
Financials and Operations
-- Maintain year-end 2008 cash and investments balance of at least $55.0
Sangamo will host a conference call today at 5:00 p.m. ET, 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 "Events and Presentations" http://investor.sangamo.com/events.cfm. 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 2008.
The conference call dial-in numbers are 877-545-1489 for domestic callers and 719-325-4844 for international callers. The passcode for the call is 4452025. 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 5:00 p.m. PT on February 5, 2008 to 11:59 p.m. PT on February 12, 2008. The conference call replay numbers for domestic and international callers are 888-203-1112 and 719-457-0820 respectively. The conference ID number for the replay is 4452025.
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 Phase 2 clinical trials for evaluation of safety and clinical effect 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 stem cell mobilization, ALS, cancer, HIV/AIDS, neuropathic pain, nerve regeneration, Parkinson's disease 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 gene modification. Sangamo has established strategic partnerships with companies outside of the human therapeutic space including Dow AgroSciences, Sigma-Aldrich Corporation and several companies applying 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 forward looking statements include,
without limitation, references to the research and development of ZFP TFs
and ZFNs, clinical trials and therapeutic applications of Sangamo's ZFP
technology platform, achievement of research milestones and objectives,
strategic partnership with collaborators and anticipated amount of cash and
cash equivalents. 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, but are not limited to, the early stage of ZFP Therapeutic
development, uncertainties related to the timing of initiation and
completion of clinical trials, whether clinical trial results will validate
and support the safety and efficacy of ZFP Therapeutics, and the ability to
establish strategic partnerships. 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. Contact
SELECTED FINANCIAL DATA
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
Consolidated Statement of
Revenues $2,767 $2,193 $9,098 $7,885
Research and development 7,904 10,057 25,559 21,527
General and administrative 2,470 1,942 8,310 7,087
Total operating expenses 10,374 11,999 33,869 28,614
Loss from operations (7,607) (9,806) (24,771) (20,729)
Interest and other income, net 935 858 3,291 2,865
Net loss $(6,672) $(8,948) $(21,480) $(17,864)
Basic and diluted net loss per
common share $(0.17) $(0.26) $(0.58) $(0.55)
Shares used in computing basic and
diluted net loss per common share 40,226 34,098 37,355 32,502
CONSOLIDATED CONDENSED BALANCE SHEET DATA
December 31, December 31,
Cash, cash equivalents, and
investments 81,412 53,975
Total assets 83,900 55,780
Total stockholders' equity 72,122 48,705
|SOURCE Sangamo BioSciences, Inc.|
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