Sangamo Therapeutics Inc (SGMO) Announces Q3 2023 Financial Results and Strategic Update
Sangamo Therapeutics Inc (NASDAQ:SGMO) reports Q3 2023 net loss of $104.2 million, compared to a net loss of $53.2 million in Q3 2022.
Company announces strategic transformation into a neurology-focused genomic medicine company, with a focus on proprietary epigenetic regulation therapies.
SGMO plans to reduce annual operating expenses by approximately 50% through restructuring, workforce reduction, and other potential cost reductions.
Company's cash, cash equivalents, and marketable securities as of September 30, 2023, were $132.1 million.
On November 1, 2023, Sangamo Therapeutics Inc (NASDAQ:SGMO) announced its third-quarter 2023 financial results and provided a strategic update. The company reported a net loss of $104.2 million, or $0.59 per share, compared to a net loss of $53.2 million, or $0.34 per share, for the same period in 2022. The increased loss was primarily due to a non-cash charge relating to impairment of long-lived asset of $44.8 million.
Financial Highlights
SGMO's revenues for the third quarter ended September 30, 2023, were $9.4 million, compared to $26.5 million for the same period in 2022. The decrease in revenues was primarily attributed to the termination of collaboration agreements with Novartis and Biogen in June 2023.
GAAP operating expenses for the third quarter ended September 30, 2023, were $115.8 million, compared to $81.3 million for the same period in 2022. Non-GAAP operating expenses, which exclude impairment charges and stock-based compensation expense, for the third quarter ended September 30, 2023, were $64.8 million, compared to $73.5 million for the same period in 2022.
Strategic Update
SGMO announced a strategic transformation into a neurology-focused genomic medicine company, focusing resources on proprietary epigenetic regulation therapies treating neurological diseases and novel AAV capsid delivery technologies. The company is deferring new investments in its Fabry and CAR-Treg programs beyond what is currently committed and is actively seeking collaboration partners or direct investors in both.
As part of the restructuring, SGMO plans to shut down its Brisbane headquarters and reduce its US workforce by approximately 40%. The restructuring and workforce reductions, in combination with other potential cost reductions, are anticipated to reduce the company's non-GAAP annual operating expenses from approximately $240 million-$260 million in 2023 to approximately $115 million-$135 million in 2024, a decrease of approximately 50%.
Looking Forward
SGMO believes its cash, cash equivalents, and marketable securities as of September 30, 2023, in combination with the cost savings expected from the restructuring, workforce reduction and other potential cost reductions, will be sufficient to fund its planned operations into the third quarter of 2024.
The company continues to seek ways to raise additional capital to strengthen its financial foundation and is actively seeking collaboration partners or direct investors in CAR-Treg cell therapy programs.
Explore the complete 8-K earnings release (here) from Sangamo Therapeutics Inc for further details.
This article first appeared on GuruFocus.
