Sangamo Therapeutics (SGMO) Q1 2025 Earnings Call May 12, 2025 06:30 PM ET Company Participants Louise Wilkie - Head - IR & Corporate CommunicationsSandy Macrae - President & Chief Executive OfficerPrathyusha Duraibabu - CFONathalie Dubois-Stringfellow - Chief Development OfficerLuis Santos - Senior Equity Research Associate, Healthcare & Biotechnology Conference Call Participants James Vane-Tempest - Senior Equity AnalystNicole Germino - Stock AnalystNone - AnalystLuca Issi - Senior Biotechnology Analyst O ...

Financial Data and Key Metrics Changes - The company reported a significant reduction in non-GAAP operating expenses by 50% year-on-year in 2024, focusing on key priorities to enhance efficiency [16][11] - An equity offering was announced to extend the company's cash runway, which is expected to last until late in the third quarter of 2025 [15][11] Business Line Data and Key Metrics Changes - The company signed a third capsid license agreement with Eli Lilly, receiving an upfront fee of $18 million and potential additional payments of up to $1.4 billion across five disease targets [5][6] - The Fabry program achieved key de-risking milestones, with all patients in the Phase 1/2 STAR study completing at least 52 weeks of follow-up, indicating a positive mean eGFR slope [9][10] Market Data and Key Metrics Changes - The company is actively engaging in discussions with multiple potential partners for its Fabry disease program, indicating strong interest in its technology [12][32] - The FDA's recent interactions have been positive, with no significant changes in their approach to the company's programs, including Fabry disease [32][33] Company Strategy and Development Direction - The long-term vision is to focus on neurology as a core area, aiming to deliver transformational therapies while maximizing shareholder value [13][15] - The company is committed to securing a commercial partnership for the Fabry program to support its neurology mission and ensure sustainable funding [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the FDA's engagement and the clarity provided regarding the chemistry, manufacturing, and controls pathway for the BLA submission [10][32] - The company remains focused on advancing its neurology pipeline and securing necessary funding to support ongoing clinical trials [11][18] Other Important Information - The company plans to present data at the ASGCT Annual Meeting, showcasing advancements in its neurology pipeline and the effectiveness of its capsid delivery technology [8][18] - The company is exploring additional funding opportunities through collaborations related to its technology platforms [12] Q&A Session Summary Question: Can you provide more color on what exactly you plan to show in the top line eGFR data? - Management confirmed that they will share the updated mean eGFR slope and additional information at a later date [21][23] Question: How many potential partners are you currently in conversations with regarding STABBI? - Management indicated that there are multiple potential partners but did not disclose specific details [26] Question: Has the pace of conversations with potential partners changed due to the macro landscape? - Management reported that interactions with the FDA have been positive and have not impacted their program [33] Question: Do you still plan to file based on 52-week eGFR data? - Management confirmed that they are pursuing the agreement with the FDA to use 52-week eGFR data for the entire patient population [37] Question: Are all patients who were on ERT still off ERT? - Management confirmed that all 18 patients who started on ERT are still off ERT [46] Question: Is there any threshold for the eGFR slope that should be looked at? - Management stated they are not commenting on specific statistical significance at this time but confirmed the mean eGFR slope remains positive [48][49]

Core Viewpoint - Sangamo Therapeutics reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.11, marking an earnings surprise of -27.27% [1] - The company generated revenues of $6.44 million for the quarter, missing the consensus estimate by 29.77%, compared to $0.48 million in the same quarter last year [2] Group 1: Financial Performance - The company has surpassed consensus EPS estimates only once in the last four quarters [2] - Sangamo shares have declined approximately 31.4% year-to-date, contrasting with the S&P 500's decline of -3.8% [3] Group 2: Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $14.8 million, and for the current fiscal year, it is -$0.39 on revenues of $46.97 million [7] - The estimate revisions trend for Sangamo is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The Medical - Biomedical and Genetics industry is ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Delivering the Future of Genomic Medicines May 2025 Forward-Looking Statements and Legal Disclaimers This presentation, and accompanying oral commentary, contains forward-looking statements regarding our current expectations. These forward-looking statements include, without limitation, statements relating to: the therapeutic and commercial potential and value of our product candidates and engineered capsids, including the ability of our zinc finger epigenetic regulators to address various neurological dise ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-Q ________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (I.R.S. Employer Identification No.) 501 Canal Blvd., Richmond, Californi ...

Financial Data and Key Metrics Changes - Sangamo Therapeutics reduced non-GAAP operating expenses by nearly half year-over-year since 2023 [9] - The company raised over $100 million in funding through non-dilutive license fees, milestone payments, and equity financing in 2024 [9] Business Line Data and Key Metrics Changes - The company advanced its neurology therapies, securing its first-ever neurology IND for idiopathic small fiber neuropathy [7] - The Fabry gene therapy study continues to generate best-in-class data, with pivotal data readout expected in mid-2025 [9][22] Market Data and Key Metrics Changes - Interest in the Fabry program has been strong, with ongoing business development negotiations for a commercial partner [11] - The company is actively engaged in advanced contract negotiations for a third STAC-BBB license agreement [13] Company Strategy and Development Direction - Sangamo's number one priority is addressing financing needs to ensure the company is well-capitalized for future success [11] - The company aims to secure a partnership for the Fabry program by the second quarter of 2025 [12] - The regulatory pathway for accelerated approval in Fabry disease could reduce the time to potential approval by approximately three years [8][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in transitioning to a clinical-stage neurology company [28] - The company is focused on raising additional capital to support its programs and is in late-stage negotiations for a third STAC-BBB license agreement [30] Other Important Information - The company plans to begin patient enrollment and dosing for ST-503 in mid-2025, with preliminary proof of efficacy data expected in the fourth quarter of 2026 [19] - The FDA has provided a clear regulatory pathway to accelerate approval for ST-920, with full 52-week data expected in the first half of 2025 [25] Q&A Session Summary Question: Is the company still waiting on any data for the Fabry program? - Management confirmed they are in late-phase discussions with several partners and are looking forward to positive data from the ongoing studies [34] Question: Have potential partners seen any data beyond the WORLDSymposium data? - Management indicated that while partners have seen broader data, they have not seen later efficacy data beyond what was presented [45] Question: What is the status of the STAC-BBB deal? - Management hopes to finalize the deal by the end of the quarter and indicated that the partner is a logical blue-chip choice [55] Question: How is the company managing operating expenses going forward? - The company has reduced operating expenses significantly and plans to maintain the same level of expenses as last year while advancing its neurology pipeline [58] Question: What are the patient enrollment criteria for the Nav1.7% study? - Management stated that the criteria will be published on clinical trial registries, emphasizing the importance of a clear result for the one-time treatment [73]

Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Q4 2024 Earnings Conference Call March 17, 2025 4:30 PM ET Company Participants Louise Wilkie - Vice President, Investor Relations and Corporate Communications Sandy Macrae - Chief Executive Officer Nathalie Dubois-Stringfellow - Chief Development Officer Prathyusha Duraibabu - Chief Financial Officer Conference Call Participants Luis Santos - H.C. Wainwright Maury Raycroft - Jefferies Nicole Germino - Truist Gena Wang - Barclays Operator Good afternoon, and welcome ...

Group 1 - Sangamo Therapeutics reported a quarterly loss of $0.11 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, and an improvement from a loss of $0.34 per share a year ago, indicating a surprise of -22.22% [1] - The company posted revenues of $7.55 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 52.51%, compared to revenues of $2.04 million in the same quarter last year [2] - Over the last four quarters, Sangamo has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with Sangamo shares losing about 3.8% year-to-date, compared to a decline of -4.1% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on $10 million in revenues, and for the current fiscal year, it is -$0.26 on $56.63 million in revenues [7] - The Medical - Biomedical and Genetics industry, to which Sangamo belongs, is currently in the top 30% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - The company recorded $56.5 million in revenue from collaboration agreements for the year ended December 31, 2024[519]. - Sangamo Therapeutics reported revenues of $57.8 million for the year ended December 31, 2024, a decrease of 67.24% compared to $176.2 million in 2023[527]. - The net loss for 2024 was $97.9 million, a 62.0% improvement compared to a net loss of $257.8 million in 2023[527]. - The company recorded an increase in revenue of $13.9 million due to changes in estimates related to a collaboration agreement with Kite Pharma, resulting in a decrease in net loss by the same amount for the year ended December 31, 2023[548]. - The company recognized total revenue of $50,000 in 2024, including $48,679 from license revenue and $1,321 from research services[614]. Operating Losses and Financial Stability - The company has incurred significant operating losses since inception and anticipates continued losses for the foreseeable future[19]. - There is substantial doubt about the company's ability to continue as a going concern without additional funding[19]. - The company has no approved products or product revenues, relying on the success of preclinical studies and clinical trials[19]. - The company’s ability to continue operations is in doubt due to significant losses, negative cash flows, and limited liquidity resources[543]. - The company must secure collaboration partners to continue funding operations and advance product development[19]. Impairments and Financial Management - The company recorded an impairment of $5.5 million in long-lived assets during 2024, including $2.9 million related to right-of-use assets[517]. - The company has fully impaired its goodwill and indefinite-lived intangible assets, indicating potential financial instability[21]. - The company recorded impairment charges of $0.4 million related to certain marketable securities during the year ended December 31, 2023[606]. - The Company incurred a pre-tax goodwill impairment charge of $38.1 million during the year ended December 31, 2023, resulting in the full impairment of goodwill[679]. - The Company recorded pre-tax long-lived asset impairment charges of $28.9 million on right-of-use assets and $18.7 million on leasehold improvements during the year ended December 31, 2023[682]. Cash and Liquidity - Cash and cash equivalents decreased to $41.9 million at the end of 2024 from $45.2 million at the end of 2023[525]. - The company expects to meet its liquidity requirements only into the middle of the second quarter of 2025, which is less than one year following the issuance of the Consolidated Financial Statements[543]. - Cash and cash equivalents as of December 31, 2024, were $41.918 million, down from $45.204 million in 2023, representing a decrease of approximately 5.7%[568]. - Total cash, cash equivalents, and restricted cash reported within the Consolidated Statements of Cash Flows amounted to $43.418 million for 2024, compared to $46.704 million in 2023, indicating a decline of about 7.8%[568]. - The company holds restricted cash of $1.5 million, which is related to a lease deposit for its office and R&D facility in Brisbane, California[567]. Collaboration Agreements and Revenue Recognition - The Company received a $40.0 million upfront license payment from Genentech in August 2024 and a $10.0 million milestone payment in October 2024[608]. - The Company is eligible to earn up to $1.9 billion in development and commercial milestones from the agreement with Genentech[608]. - The initial transaction price with Genentech is $50.0 million, which includes the upfront license fee and the technology transfer milestone payment[610]. - The Company identified two performance obligations within the Genentech Agreement, with revenue from preclinical activities recognized over time[612]. - The Company received a $20.0 million upfront license payment from Astellas under the Astellas Agreement and is eligible for up to $1.3 billion in additional milestone payments[617]. Strategic Focus and Restructuring - Sangamo Therapeutics announced a strategic transformation to focus on neurology and genomic medicine, emphasizing epigenetic regulation therapies and novel AAV capsid delivery technology[539]. - The company expects to close its facility in Brisbane, California, in the near future as part of its restructuring efforts[675]. - The company terminated its leases in Valbonne, France, as part of its restructuring efforts in December 2024[689]. - Total other accrued liabilities decreased from $23,554,000 in 2023 to $8,195,000 in 2024, representing a reduction of approximately 65.2%[688]. - Accrued restructuring charges significantly decreased from $11,733,000 in 2023 to $896,000 in 2024, a decline of approximately 92.4%[688]. Employee and Operational Challenges - The company may experience difficulties in hiring and retaining qualified skilled employees, impacting its operational capabilities[21]. - The company faces significant risks related to regulatory approvals and compliance, which could impact its operations[16]. - The biotechnology sector is highly competitive, and the company may face challenges from rival technologies and products[19]. - Research and development expenses primarily consist of compensation-related expenses, laboratory supplies, and clinical studies, which are expensed as incurred[575]. - The company operates in a single segment, with all revenues generated in the United States for the years ended December 31, 2024, and 2023[593].

Financial Performance - The consolidated net loss for Q4 2024 was $23.4 million, a decrease from $60.3 million in Q4 2023, while the full year net loss was $97.9 million compared to $257.8 million in 2023[14]. - Revenues for Q4 2024 were $7.6 million, up from $2.0 million in Q4 2023, with total revenues for 2024 at $57.8 million, down from $176.2 million in 2023[15]. - The decrease in 2024 revenues of $118.4 million was primarily due to the termination of collaboration agreements with Biogen and Novartis, which accounted for a combined decrease of $147 million[16]. - Total revenues for the year ended December 31, 2024, were $57.8 million, a decrease of 67.3% compared to $176.2 million in 2023[33]. - Total operating expenses for the year ended December 31, 2024, were $161.8 million, down 64.0% from $450.2 million in 2023[33]. - Research and development expenses for the year ended December 31, 2024, were $111.5 million, a decrease of 52.4% compared to $234.1 million in 2023[33]. - The net loss for the year ended December 31, 2024, was $97.9 million, compared to a net loss of $257.8 million in 2023, representing a 62.0% improvement[33]. - Cash, cash equivalents, and marketable securities as of December 31, 2024, were $41.9 million, down from $81.0 million as of December 31, 2023[34]. - Total assets decreased to $101.6 million as of December 31, 2024, from $165.3 million as of December 31, 2023[34]. - The company expects total operating expenses in the range of approximately $135 million to $155 million on a GAAP basis for 2025[27]. - Non-GAAP total operating expenses for 2025 are expected to be in the range of approximately $125 million to $145 million, consistent with the prior year[27]. Funding and Financial Strategy - Sangamo Therapeutics raised over $100 million in funding in 2024 through non-dilutive license fees, milestone payments, and equity financing[3]. - A $20 million upfront license fee was received from Astellas as part of a capsid license agreement, with potential to earn up to $1.3 billion in additional fees and milestone payments[8]. - Cash and cash equivalents as of December 31, 2024, were $41.9 million, down from $81.0 million at the end of 2023, with sufficient funds projected to last into mid-2025[20]. - Sangamo's ability to secure adequate additional funding is critical for its future plans and expectations, including the development of commercially viable products[29]. Regulatory and Development Outlook - The company expects to commence patient enrollment and dosing for ST-503 in mid-2025, with preliminary proof of efficacy data anticipated in Q4 2026[13]. - Sangamo has a clear regulatory pathway to Accelerated Approval for isaralgagene civaparvovec in Fabry disease, potentially reducing the approval timeline by approximately three years[5]. - The FDA has agreed that data from the ongoing Phase 1/2 STAAR study can serve as the primary basis for approval under the Accelerated Approval Program for isaralgagene civaparvovec[5]. - The company plans to advance isaralgagene civaparvovec towards a potential BLA submission while engaging in business development negotiations for a potential Fabry commercialization agreement[27].