Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Q2 2023 Earnings Conference Call August 8, 2023 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 Mark McClung – Chief Operating Officer Jason Fontenot – Chief Scientific Officer Prathyusha Duraibabu – Chief Financial Officer Lisa Rojkjaer – Chief Medical Officer Conference Call Participants Maury Raycroft – Jeff ...

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 June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-30171 _______ ...

[PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents Sangamo Therapeutics' unaudited Condensed Consolidated Financial Statements, showing a shift to net income in Q1 2023 driven by collaboration revenue, offset by significant impairment charges Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$440,567** | **$562,509** | | Cash and cash equivalents | $78,241 | $100,444 | | Goodwill | $— | $37,552 | | **Total Liabilities** | **$104,957** | **$267,551** | | Deferred revenues (Current) | $9,575 | $51,780 | | Deferred revenues (Non-current) | $1,816 | $109,377 | | **Total Stockholders' Equity** | **$335,610** | **$294,958** | Condensed Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Revenues | $157,957 | $28,231 | | Research and development | $63,216 | $58,584 | | Impairment of goodwill | $38,138 | $— | | Impairment of long-lived assets | $20,433 | $— | | **Net Income (Loss)** | **$21,133** | **($43,977)** | | **Diluted EPS** | **$0.12** | **($0.30)** | - Net cash used in operating activities was **$66.3 million** for the three months ended March 31, 2023, compared to **$59.0 million** in the same period of 2022[33](index=33&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail financial statement explanations, including going concern assessment, collaboration terminations leading to accelerated revenue and impairment charges, and a significant April 2023 restructuring - The company's history of recurring net losses and an accumulated deficit of **$1.13 billion** raised substantial doubt about its ability to continue as a going concern, though management's plans are believed to alleviate this doubt for at least the next 12 months[39](index=39&type=chunk)[40](index=40&type=chunk)[42](index=42&type=chunk) - In March 2023, termination notices from Biogen and Novartis were received, with the Biogen termination leading to a contract modification resulting in a **$127.1 million** increase in revenue[83](index=83&type=chunk)[90](index=90&type=chunk)[97](index=97&type=chunk) - Due to a sustained decline in stock price and collaboration terminations, the company recognized a non-cash goodwill impairment charge of **$38.1 million** (fully impairing goodwill) and a long-lived asset impairment charge of **$20.4 million** in Q1 2023[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - In April 2023, the company announced a restructuring expected to eliminate approximately **120 roles** (**27%** of its US workforce) and incur **$5 million to $7 million** in cash-based severance expenses[149](index=149&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, operational updates, and liquidity, focusing on collaboration terminations, a strategic restructuring, and plans to address going concern doubts through cost reductions - In March 2023, Biogen and Novartis terminated their collaboration agreements for convenience, effective June 2023, leading to a one-time revenue increase of **$127.1 million** from the Biogen agreement modification[154](index=154&type=chunk) - In April 2023, a restructuring was announced to reduce costs, eliminating approximately **120 US roles** (**27%** of US workforce) and focusing on neurology, Fabry disease (isaralgagene civaparvovec), and the TX200 CAR-Treg program[154](index=154&type=chunk) - Management has concluded there is **substantial doubt about the company's ability to continue as a going concern** but believes its cost-reduction plans are sufficient to fund operations for at least the next 12 months[193](index=193&type=chunk)[196](index=196&type=chunk) Results of Operations Comparison (in thousands) | Metric | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $157,957 | $28,231 | $129,726 | | R&D Expenses | $63,216 | $58,584 | $4,632 | | G&A Expenses | $18,136 | $14,908 | $3,228 | | Impairment Charges | $58,571 | $0 | $58,571 | [Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks include interest rate fluctuations on its investment portfolio and foreign currency exchange risk from European operations, with no material changes since year-end 2022 - The company's main market risk is interest rate risk on its investment portfolio, consisting of high-credit-quality securities like U.S. government-sponsored entity debt, commercial paper, and corporate debt[210](index=210&type=chunk)[211](index=211&type=chunk) - The company is exposed to foreign currency risk from its European operations, which primarily conduct business in Euros[212](index=212&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed effective as of March 31, 2023, with no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[214](index=214&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[217](index=217&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings as of the reporting period - Sangamo is not party to any material pending legal proceedings[220](index=220&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section highlights heightened risks including the urgent need for additional funding, negative impacts from collaboration terminations, uncertainty of restructuring benefits, and potential Nasdaq delisting - The company needs substantial additional funding to execute its operating plan and continue as a going concern, and may be unable to raise capital on favorable terms, if at all[226](index=226&type=chunk) - The recent terminations of collaboration agreements by Biogen and Novartis highlight the risk of collaborators abandoning programs, which negatively impacts revenues and development efforts[232](index=232&type=chunk)[234](index=234&type=chunk) - The April 2023 restructuring may not result in anticipated savings or operational efficiencies, could incur greater-than-expected costs, and could disrupt business operations[242](index=242&type=chunk) - There is a risk that the company's common stock may be delisted from the Nasdaq Global Select Market if it fails to meet continued listing standards, such as the **$1.00** minimum bid price requirement[244](index=244&type=chunk) - The company has recorded significant impairment charges for intangible and long-lived assets and may be required to record more in the future, which would adversely affect results of operations[245](index=245&type=chunk)[247](index=247&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[248](index=248&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including amendments to incorporation documents, offering agreements, and CEO/CFO certifications

Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Q1 2023 Earnings Conference Call April 27, 2023 8:30 AM ET Company Participants Louise Wilkie - VP, IR and Corporate Communications Alexander D. Macrae - President and CEO D. Mark McClung - EVP and COO Prathyusha Duraibabu - SVP, Principal Accounting Officer and CFO Jason D. Fontenot - SVP and Chief Scientific Officer Nathalie Dubois-Stringfellow - SVP and Chief Development Officer Bettina M. Cockroft - CMO Conference Call Participants Benjamin Burnett - Stifel Grego ...

Forward-Looking Statements Pioneering and Delivering the Future of Genomic Medicines This presentation contains forward-looking statements regarding our current expectations. These forward-looking statements include, without limitation, statements relating to our focus on key strategic priorities, the potential to develop, obtain regulatory approvals for and commercialize durable, safe and effective therapies to treat certain diseases and the timing, availability and costs of such therapies, the potential t ...

Pioneering and Delivering the Future of Genomic Medicines Forward-Looking Statements 2 Four Clinical-Stage Programs Advancing Towards Potential Commercialization In-House Manufacturing Provides Flexibility and Control Sangamo in 2023: Value Thesis 1 2 Pioneer in CAR-Tregs • TX200 renal transplant Ph1/2 study progresses, with possible acceleration to prove biology and platform value. Second wave of potentially transformative autoimmune and neurology programs advancing into the clinic • Second of four wholly- ...

Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Q4 2022 Results Conference Call February 22, 2023 4:30 PM ET Company Participants Louise Wilkie - VP of IR and Corporate Communications Sandy Macrae - Chief Executive Officer Mark McClung - Chief Operating Officer Prathyusha Duraibabu - Chief Financial Officer Jason Fontenot - Chief Scientific Officer Nathalie Dubois-Stringfellow - Chief Development Officer Bettina Cockroft - Chief Medical Officer Andy Ramelmeier - Head of Technical Operations Conference Call Partici ...

Company Overview - The company is a clinical-stage biotechnology firm with no approved products or product revenues, relying on successful clinical trial results for future success [16]. - The company has incurred significant operating losses since inception and anticipates continued losses for the foreseeable future, indicating a need for substantial additional funding [16]. - The company relies heavily on collaborations with larger biopharmaceutical companies for revenue generation and product development, which poses risks if conflicts arise [16]. - The company faces significant competition in biotechnology and genomic medicine, which may impact its market position [16]. - The company has limited experience in manufacturing and relies heavily on third-party manufacturers, which could lead to unexpected costs and supply interruptions [16]. Financial Performance - Total revenues for 2022 were $111,299,000, a slight increase from $110,701,000 in 2021 [556]. - Research and development expenses rose to $249,898,000 in 2022, compared to $230,819,000 in 2021, reflecting a 8.9% increase [556]. - The net loss for 2022 was $192,278,000, compared to a net loss of $178,297,000 in 2021, indicating a 7.8% increase in losses [556]. - Total current assets decreased to $300,327,000 in 2022 from $398,769,000 in 2021, a decline of 24.6% [554]. - Total liabilities decreased to $267,551,000 in 2022 from $346,580,000 in 2021, a reduction of 22.8% [554]. - Deferred revenues decreased significantly from $85,711,000 in 2021 to $51,780,000 in 2022, a decline of 39.6% [554]. - The company reported a basic and diluted net loss per share of $1.25 for 2022, compared to $1.23 in 2021 [556]. - Cash and cash equivalents decreased to $100,444,000 in 2022 from $178,872,000 in 2021, a drop of 43.8% [554]. - The total stockholders' equity decreased to $294,958,000 in 2022 from $375,343,000 in 2021, a decline of 21.4% [554]. - The net loss for the year ended December 31, 2022, was $192.3 million, compared to a net loss of $178.3 million in 2021 and $121.1 million in 2020 [565]. - Cash, cash equivalents, and restricted cash at the end of 2022 totaled $101.9 million, down from $180.4 million at the end of 2021 [565]. - The company had capital resources of $307.5 million as of December 31, 2022, consisting of cash, cash equivalents, and marketable securities [569]. - The company reported stock-based compensation expenses of $31.7 million in 2022, slightly down from $33.0 million in 2021 [565]. - The company experienced a net cash used in operating activities of $223.6 million in 2022, compared to $233.3 million in 2021 [565]. Currency and Risk Exposure - The company reported foreign currency transaction losses of $3.1 million in 2022, highlighting exposure to foreign currency risk [539]. - A 10% strengthening or weakening in foreign currency rates would have increased or decreased net loss for the year ended December 31, 2022, by approximately $3.3 million [538]. - The company is exposed to credit risk due to investments in financial instruments, with established policies to manage this risk [597]. Collaboration and Revenue Sources - Revenue from major collaboration agreements for 2022 included 36% from Novartis, 35% from Kite Pharma, and 26% from Biogen [588]. - The Company recognized total revenue of $39.728 million related to the Novartis agreement in 2022, an increase from $37.944 million in 2021, reflecting a growth of approximately 4.7% [626]. - The upfront license fee received from Novartis was $75 million, with potential additional earnings of up to $420 million in development milestones and $300 million in commercial milestones [623]. - Under the collaboration with Biogen, the Company received an upfront license fee of $125 million and could earn up to approximately $2.4 billion in total milestone payments [629]. - The Company had deferred revenue of $9.6 million related to the Novartis agreement as of December 31, 2022, down from $40.9 million in 2021, indicating a decrease of approximately 76.5% [626]. - The Company had deferred revenue of $132.2 million related to the Biogen agreement as of December 31, 2022 [637]. - Kite Pharma agreement includes an upfront payment of $150.0 million and potential milestone payments totaling up to $3.0 billion [643]. - Revenue recognized under the Kite agreement was $38.6 million in 2022, an increase from $25.5 million in 2021 [652]. Operational Challenges and Future Outlook - The company plans to continue funding operations through collaborations, strategic partnerships, and equity securities issuance [569]. - Management believes existing resources will be sufficient to fund operations for at least the next 12 months [569]. - The company raised substantial doubt about its ability to continue as a going concern due to ongoing development projects requiring significant expenditures [571]. - The Company plans to implement cost preservation measures, including deferring certain R&D programs and pausing new hiring, to address liquidity needs [573]. - Management believes that the planned actions will provide sufficient liquidity to meet financial obligations over the next twelve months [575]. - The Company is actively seeking additional capital through various financing options, including public or private equity, debt financings, and strategic collaborations [577]. Asset Management - The company’s investment portfolio consists of high-quality securities, with minimal interest rate risk, and is not leveraged [536]. - The fair value of cash equivalents and marketable securities is classified as Level 1 for money market funds and Level 2 for other securities, indicating a reliance on observable market prices [618]. - The Company has cash equivalents totaling $50,820,000 and marketable securities amounting to $207,033,000 as of December 31, 2022, leading to total cash equivalents and marketable securities of $257,853,000 [617]. - Total cash equivalents and marketable securities as of December 31, 2022, amounted to $258.743 million, a decrease from $406.057 million in 2021, representing a decline of approximately 36.3% [619]. Stock and Compensation - The Company has stock options and RSUs outstanding totaling 18,560,755 as of December 31, 2022, which are anti-dilutive and excluded from diluted net loss per share calculations [612]. - The Company awarded 4,349,795, 2,140,785, and 2,517,101 Restricted Stock Units (RSUs) during the years ended December 31, 2022, 2021, and 2020, respectively [724]. - Total stock-based compensation expense recognized was $31.7 million, $33.0 million, and $25.7 million for the years ended December 31, 2022, 2021, and 2020, respectively [726]. - Employee stock-based compensation expense was determined using the Black-Scholes option valuation model for stock options and employee share purchases under the ESPP [727]. Legal and Regulatory Matters - The company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the position will be sustained upon examination [605]. - The company evaluates its property and equipment for impairment whenever events indicate that the carrying amount may not be recoverable [599]. - The Company has not identified any impairment of goodwill or indefinite-lived intangible assets as of December 31, 2022 [590].

Pioneering the Future of Genomic Medicines November 2022 Forward-Looking Statements This presentation contains forward-looking statements regarding our current expectations. These forward-looking statements include, without limitation, statements relating to the potential to develop, obtain regulatory approvals for and commercialize durable, safe and effective therapies to treat certain diseases and the timing, availability and costs of such therapies, the potential to use ZFP, ZFP-TF, CAR-Treg and other te ...

Sangamo Therapeutics, Inc. (NASDAQ:SGMO) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET Company Participants Louise Wilkie - Investor Relations Sandy Macrae - Chief Executive Officer Nathalie Dubois-Stringfellow - Chief Development Officer Jason Fontenot - Chief Scientific Officer Prathyusha Duraibabu - Chief Financial Officer Bettina Cockroft - Chief Medical Officer Mark McClung - Chief Operating Officer Conference Call Participants Gena Wang - Barclays Yanan Zhu - Wells Fargo Ritu Baral - Co ...