BY Richard Summefield
On Tuesday, Sangamo Therapeutics, Inc., a genomic medicine company, announced it had filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware to facilitate a court-supervised reorganisation, which is expected to include the auction of substantially all of the company’s assets.
Simultaneously, the company also announced it had entered into two separate asset sale agreements, one with Eli Lilly for Sangamo’s capsid delivery platform, zinc finger platform, modular integrase (MINT) platform and the prion disease programme, ST-506, and another with Astellas Pharma Inc., for the company’s Fabry disease programme, isaralgagene civaparvovec (ST-920).
To underpin the sale process, Lilly and Astellas will each serve as stalking horse bidders for the sale of the assets contemplated by their respective agreements. A stalking horse asset sale agreement establishes a strong baseline offer and is intended to help maximise value for all stakeholders through the Chapter 11 auction process.
Although during the Chapter 11 proceedings the company said “substantially all” of its assets will be up for sale, the stalking horse bids do not include the clinical-stage ST-503 programme to treat chronic neuropathic pain, the giroctocogene fitelparvovec programme to treat hemophilia A, and Sangamo’s cell therapy and regulatory T cell (Treg) assets. Sangamo said these are expected to remain available to interested bidders at the auction.
To maintain operations during the restructuring, Sangamo has secured a commitment for debtor in possession financing from Northridge ATM and its affiliates. The company said the financing, which is subject to court approval, is expected to provide sufficient liquidity to fund operations, support the Chapter 11 process and meet post-petition obligations. Sangamo has filed motions with the US Bankruptcy Court for the District of Delaware seeking authorisation to continue normal business operations during the proceedings.
“Following a comprehensive review of available alternatives, we believe this process provides a clear framework to pursue value‑maximizing transactions,” said Sandy Macrae, chief executive of Sangamo. “Our priority is to execute a disciplined and efficient sale process while supporting all of our stakeholders. We are also pleased to have signed agreements with two large pharmaceutical companies to serve as stalking horse bidders in the process, underscoring the strategic interest in our assets.”
Sangamo reported a $31m net loss on revenue that fell 78 percent year over year to $1.4m from $6.4m. Sangamo said $5m of that decrease was due to Pfizer’s termination early last year of its collaboration with Sangamo to develop a hemophilia A gene therapy, giroctocogene fitelparvovec. The company is also laying off approximately 51 staffers, or around 40 percent of its total workforce, according to a filing with the Securities and Exchange Commission.
News: Sangamo Therapeutics Enters Into Asset Sale Agreements with Lilly and Astellas