UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
report (Date of earliest event reported): July 29,
2009
SANGAMO
BIOSCIENCES, INC.
(Exact
Name of Registrant as Specified in Its Charter)
Delaware
(State or
Other Jurisdiction of Incorporation)
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000-30171
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68-0359556
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(Commission
File Number)
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(IRS
Employer Identification No.)
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501
Canal Blvd, Suite A100
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Richmond,
California 94804
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(510)
970-6000
(Registrant’s
Telephone Number, Including Area Code)
(Former
Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction A.2.
below):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
2.02. Results of Operations and Financial Condition.
On
July 29, 2009, Sangamo BioSciences, Inc. issued a press release announcing its
financial results for the quarter ended June 30, 2009. A copy of the
press release is attached as Exhibit 99.1 to this Current Report on Form
8-K.
Item
9.01 Financial Statements and Exhibits
(c) Exhibits. The
following material is filed as an exhibit to this Current Report on Form
8-K:
Exhibit
No.
99.1 Press
Release Issued July 29, 2009.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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DATE:
July 29, 2009
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SANGAMO
BIOSCIENCES, INC.
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By:
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/s/
EDWARD O. LANPHIER II
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Edward
O. Lanphier II
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President,
Chief Executive Officer
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Sangamo
BioSciences, Inc.
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Point
Richmond Tech Center
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501
Canal Boulevard
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Richmond,
CA 94804
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510-970-6000
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510-236-8951(Fax)
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SANGAMO
BIOSCIENCES REPORTS SECOND QUARTER 2009
FINANCIAL
RESULTS
Richmond, California – July
29, 2009 – Sangamo BioSciences, Inc. (Nasdaq: SGMO) today reported second
quarter 2009 financial results and accomplishments.
For the
second quarter ended June 30, 2009, Sangamo reported a consolidated net loss of
$4.5 million, or $0.11 per share, compared to a consolidated net loss of $7.4
million, or $0.18 per share, for the same period in 2008. As of June 30, 2009,
the company had cash, cash equivalents, marketable securities and interest
receivable of $52.6 million.
Revenues
for the second quarter of 2009 were $4.7 million, compared to $2.8 million for
the same period in 2008. Second quarter 2009 revenues were from the Company’s
collaboration agreements with Dow AgroSciences (DAS) and Sigma-Aldrich
Corporation, enabling technology agreements in protein production and research
grants. The revenue recognized for the second quarter of 2009 consisted of $4.2
million in collaboration agreements and $0.5 million in research
grants.
Research
and development expenses were $6.9 million for the second quarter of 2009,
compared to $8.3 million for the same period in 2008. The decrease in
research and development expenses for the second quarter of 2009 was primarily
due to decreased manufacturing and preclinical expenses partially offset by
increased clinical trial expenses. Non-cash employee stock-based
compensation included in research and development expenses totaled $0.7 million
for the second quarters of both 2009 and 2008.
General
and administrative expenses were $3.0 million for the second quarter of 2009,
compared to $2.5 million for the same period in 2008. The increase in general
and administrative expenses was primarily due to increased professional services
and personnel costs including non-cash employee stock-based compensation which
totaled $0.8 million in the second quarter of 2009 compared to $0.6 million in
the same period in 2008.
Total
operating expenses for the second quarter of 2009 were $9.9 million, compared to
$10.8 million for the same period in 2008.
Net
interest and other income was $0.6 million for the second quarters of both 2009
and 2008.
Six
Month Results
For the
six months ended June 30, 2009, the consolidated net loss was $11.3 million, or
$0.28 per share, compared to a consolidated net loss of $15.4 million, or $0.38
per share, for the six-month period ended June 30, 2008. Revenues
were $7.9 million for the first half of 2009, compared to $5.6 million in the
same period in 2008. Total operating expenses were $20.1 million for the first
half of 2009 and $22.4 million in the first half of 2008. The decrease in
operating expenses for 2009 was primarily associated with decreased
manufacturing, preclinical and decreased lab supply expenses partially offset by
increased clinical trial expenses.
Recent
Highlights
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·
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Presentation of positive Phase
2 ZFP Therapeutic data at ADA 2009. Sangamo announced the
presentation of previously unreleased positive Phase 2 clinical data from
its ZFP TherapeuticTM
program to develop SB-509 as a treatment for diabetic neuropathy (DN) at
the 69th Annual Scientific Sessions of the American Diabetes Association
(ADA). Data from Sangamo's SB-509-601 and SB-509-701A Phase 2 clinical
trials demonstrated that SB-509 treatment resulted in statistically
significant and clinically relevant improvements in subjects with moderate
and severe DN as compared to placebo. The data have enabled the definition
of a responder population for SB-509 for future clinical
trials.
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Achievement of key milestone in
cell engineering agreement with Genentech. A key
research milestone was achieved in Sangamo’s Research and License
Agreement with Genentech, Inc., a wholly-owned member of the Roche Group.
Genentech scientists demonstrated the successful knockout of two
pre-selected genes in a Chinese hamster ovary (CHO) cell line using
Sangamo's proprietary zinc finger DNA-binding protein nuclease (ZFN)
technology. Genentech is using ZFN technology to generate cell lines with
novel characteristics for pharmaceutical protein production purposes. The
milestone achievement triggered a payment from Genentech to
Sangamo.
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Publication in Nature and Science magazines of data
demonstrating the successful application of ZFN technology in plant
agriculture and in the generation of novel transgenic animals. Data
were published in April in the scientific journal Nature by licensing
partner Dow AgroSciences and Sangamo demonstrating the successful
application of ZFP technology for the efficient generation of maize plants
with multiple, commercially important traits. The techniques described are
broadly applicable across plant species and traits and establish a new
method for rapid and precise crop development. A second publication in
July in the journal Science described a
method for the rapid and efficient production of transgenic rats in which
specific genes are deleted or knocked out. The technology opens
the door for the production of knockout animals in species other than
mouse and broadens the possibilities for new animal models of human
disease.
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Sangamo awarded Grand
Challenges Explorations Grant for Innovative Global Health Research from
the Bill & Melinda Gates Foundation. The
grant will support an innovative global health research project conducted
by Sangamo scientists titled "Zinc Finger Nucleases for In Vivo Treatment
of HIV Infection."
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Promotion of Philip D. Gregory,
D. Phil. to Chief Scientific Officer in addition to his role as Vice
President, Research. Dr. Gregory’s promotion became effective July
1, 2009. He has served as Sangamo’s Vice President, Research since October
2005 and joined the company in December
2000.
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Conference
Call
Sangamo
will host a conference call today, July 29, 2009 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 the remainder of
2009.
The
conference call dial-in numbers are 877-795-3638 for domestic callers and
719-325-4858 for international callers. The passcode for the call is
9591497. 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 8:00 p.m. ET on July 29, 2009 to midnight ET on August
5, 2009. 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 9591497.
About
Sangamo
Sangamo
BioSciences, Inc. is focused on researching and developing zinc finger
DNA-binding protein (ZFP) technology for therapeutic gene regulation and
modification. By engineering ZFPs that recognize a specific DNA sequence Sangamo
has created ZFP transcription factors (ZFP TFTM) that
can control gene expression and, consequently, cell function. Sangamo is also
developing sequence-specific ZFP Nucleases (ZFNTM) for
gene modification. The most advanced ZFP TherapeuticTM
development program is currently in Phase 2 clinical trials for evaluation of
safety and clinical effect in patients with diabetic neuropathy and ALS. Sangamo
also has a Phase 1 clinical trial to evaluate safety and clinical effect of a
ZFP Therapeutic for the treatment of HIV/AIDS. Other therapeutic development
programs are focused on cancer, neuropathic pain, nerve regeneration,
Parkinson’s disease and monogenic diseases. Sangamo has established strategic
partnerships with companies in non-therapeutic applications of its ZFP
technology, including Dow AgroSciences, Sigma-Aldrich Corporation Genentech and
Pfizer. For more information about Sangamo visit 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, therapeutic and non-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 ZFP-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 Sangamo’s Annual Report 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
Sangamo BioSciences,
Inc.
Elizabeth
Wolffe, Ph.D.
510-970-6000,
x271
-more-
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SELECTED
CONSOLIDATED FINANCIAL DATA
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(in
thousands, except per share data)
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(unaudited)
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STATEMENT
OF OPERATIONS DATA:
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Three
Months Ended
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Six
Months Ended
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June
30,
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June
30,
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2009
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2008
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2009
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2008
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Revenues
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Collaboration
agreements
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$ | 4,213 | $ | 2,378 | $ | 7,370 | $ | 4,462 | ||||||||
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Research
grants
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513 | 464 | 513 | 1,145 | ||||||||||||
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Total
revenues
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4,726 | 2,842 | 7,883 | 5,607 | ||||||||||||
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Operating
expenses:
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Research
and development
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6,877 | 8,286 | 14,133 | 16,929 | ||||||||||||
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General
and administrative
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3,007 | 2,545 | 5,933 | 5,472 | ||||||||||||
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Total
operating expenses
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9,884 | 10,831 | 20,066 | 22,401 | ||||||||||||
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Loss
from operations
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(5,158 | ) | (7,989 | ) | (12,183 | ) | (16,794 | ) | ||||||||
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Interest
and other income, net
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647 | 570 | 840 | 1,406 | ||||||||||||
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Net
loss
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$ | (4,511 | ) | $ | (7,419 | ) | $ | (11,343 | ) | $ | (15,388 | ) | ||||
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Basic
and diluted net loss per common share
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$ | (0.11 | ) | $ | (0.18 | ) | $ | (0.28 | ) | $ | (0.38 | ) | ||||
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Shares
used in computing basic and diluted net
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loss
per common share
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41,123 | 40,858 | 41,094 | 40,673 | ||||||||||||
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SELECTED
BALANCE SHEET DATA:
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June 30, 2009
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December 31, 2008
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Cash,
cash equivalents, marketable securities and
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interest
receivable
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$ | 52,586 | $ | 65,025 | ||||||||||||
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Total
assets
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54,938 | 67,850 | ||||||||||||||
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Total
stockholders' equity
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47,176 | 55,396 | ||||||||||||||
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