Sangamo Therapeutics Launches Auction Process for Clinical-Stage Chronic Neuropathic Pain Program

Completed asset sales funded full repayment of the bankruptcy financing facility, while ST-503 remains in a separate sale process.

Rhea-AI Summary

Sangamo Therapeutics (SGMOQ) has initiated an auction for its clinical-stage ST-503 chronic neuropathic pain program, with completion expected in fourth-quarter 2026. Seven sites are activated in the Phase 1/2 STAND study evaluating safety and efficacy in small fiber neuropathy. ST-503 has FDA Fast Track designation.

Previously announced asset sales have closed, generating $163.55 million in gross cash proceeds. PTC acquired the Fabry disease program ST-920 for $111 million in cash, plus up to $100 million in potential future regulatory milestone payments. Lilly acquired the capsid delivery, zinc finger and MINT platforms and the prion disease program ST-506 for $50 million in cash. Sangamo repaid all outstanding amounts under its debtor-in-possession financing facility, a loan provided by Future Solutions during bankruptcy proceedings. The completed sales followed an August 2026 court-supervised auction.

7 points · 2 major

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1 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointPTC’s completed ST-920 acquisition brought Sangamo $111 million in cash. 1.5× market cap
• Major pointLilly’s completed platform and ST-506 acquisitions brought Sangamo $50 million in cash. 69% of market cap
• Moderate pointFuture Solutions bankruptcy financing was repaid in full after receipt of transaction proceeds.
• Moderate point. Forward-looking: it has not happened yet and may not happen.ST-503’s auction is underway; Sangamo expects completion in fourth-quarter 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.ST-920 sale includes up to $100 million in potential future regulatory milestone payments.

2 minor points

• Minor pointST-503 has received FDA Fast Track designation.
• Minor pointPhase 1/2 STAND study has seven activated sites evaluating ST-503 safety and efficacy.

Negative

• Major pointSangamo remains in Chapter 11 reorganization proceedings.

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Auction process initiated for ST-503 program for chronic neuropathic pain, expected to be completed in fourth quarter of 2026

Previously announced asset sale transactions with PTC and Lilly have closed, generating $163.55 million in gross cash proceeds

RICHMOND, Calif., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Sangamo Therapeutics, Inc. (OTCID Basic Market: SGMOQ) today announced the new timeline for its continued sale process for the ST-503 program, a clinical-stage investigational epigenetic regulator for the treatment of intractable pain due to small fiber neuropathy (SFN).

Seven sites have been activated in the Phase 1/2 STAND study evaluating the safety and efficacy of ST-503 in patients with SFN, a peripheral neuropathy associated with severe chronic neuropathic pain and significant unmet medical need. SFN has an estimated prevalence of at least 180,000 patients in the U.S., and more broadly, peripheral neuropathies are estimated to affect nearly 40 million Americans. ST-503 has received Fast Track designation from the U.S. Food and Drug Administration (FDA).

ST-503 uses an adeno-associated virus (AAV) vector to deliver an engineered zinc finger repressor (ZFR), designed to reduce expression of SCN9A, the gene encoding the Nav1.7 sodium channel, which plays a central role in pain signaling. In preclinical studies, a single intrathecal administration of ST-503 reduced Nav1.7 expression and pain hypersensitivity in animal models. Sangamo’s nonclinical studies also showed that ST-503 was well tolerated in nonhuman primates (NHPs), with substantial Nav1.7 reduction and no off-target effects observed.

Parties interested in participating in this auction or other potential transactions with Sangamo should contact busdev@sangamo.com. The auction process is expected to be completed in the fourth quarter of 2026.

Other Corporate Updates

Following the court-supervised auction process conducted under Section 363 of the U.S. Bankruptcy Code in August 2026, the previously announced asset sale transactions, including the sales to PTC Therapeutics, Inc. (PTC) and Eli Lilly and Company (Lilly), have closed. Sangamo received aggregate cash proceeds of $163.55 million at closing.

Under the completed transactions, PTC acquired Sangamo’s Fabry disease program, isaralgagene civaparvovec, or ST-920, for $111 million in cash, plus up to $100 million in potential future regulatory milestone payments. Lilly acquired Sangamo’s capsid delivery, zinc finger and MINT platforms and the prion disease program, ST-506, for $50 million in cash.

Following receipt of the proceeds from these transactions, Sangamo repaid in full all amounts outstanding under the debtor-in-possession (DIP) financing facility provided by Future Solutions Inc (FSI).

Additional information about the Chapter 11 reorganization and asset sales, as well as other documents related to the proceedings, is available through Sangamo’s noticing agent at https://www.veritaglobal.net/SangamoTherapeutics.

About Sangamo Therapeutics

Sangamo Therapeutics is a genomic medicine company that pioneered the development of zinc finger and capsid delivery technologies to address serious neurological and rare diseases. The Company is currently operating under court supervision in Chapter 11. To learn more, visit www.sangamo.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “expects,” “intends,” “potential,” “projects,” “target,” “will,” “would” and “future” or similar expressions are intended to identify forward-looking statements.

Forward-looking statements in this press release include, but are not limited to, statements concerning or implying Sangamo’s plans to commence an auction process for its ST-503 program, or to otherwise sell its assets pursuant to Chapter 11 of the U.S. Bankruptcy Code; and other statements regarding Sangamo’s strategy and future operations, performance and prospects in connection with its Chapter 11 proceedings. Forward-looking statements are based on management's current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties related to: Sangamo’s ability to successfully complete an auction for, and ultimately consummate the sale of, its ST-503 program; risks and uncertainties regarding Sangamo’s ability to successfully consummate and complete a plan of reorganization under Chapter 11; risks associated with the potential adverse impact of the bankruptcy proceedings on Sangamo’s business, financial condition, liquidity and results of operations; Sangamo’s ability to maintain contracts that are critical to expected limited operations and meet financial obligations during the bankruptcy proceedings; the outcome and timing of the bankruptcy process and any sales of all or some of Sangamo’s assets; the effect of the filing of bankruptcy and any sale of all or some of Sangamo’s assets on its relationships with third parties; Sangamo’s expectations regarding liquidity and obligations, including its use of, and need for, cash and any other underlying assumptions; the length of time that Sangamo will operate under Chapter 11 and the continued availability of operating capital during such pendency; the impact of the Chapter 11 case on the trading price and volatility of Sangamo’s common stock; any potential proceedings that may be brought by third parties in connection with the bankruptcy petitions or the potential sale of all or some of Sangamo’s assets; uncertainty regarding obtaining the Court’s approval of the potential sale of all or some of Sangamo’s assets or other terms and conditions to any such potential sale; Sangamo’s ability to maintain financing, including debtor in possession funding, with lenders or creditors during the Chapter 11 case and to comply with the restrictions imposed by the terms and conditions of such financing arrangements; the timing or amount of any distributions, if any, to Sangamo’s stakeholders; Sangamo’s ability to retain senior management and other key personnel during the pendency of the Chapter 11 case; uncertainties inherent in the conduct of clinical trials and the development of product candidates; Sangamo’s reliance on third parties over which it may not always have full control; Sangamo’s ability to raise additional capital, as well as additional risks and uncertainties described in Sangamo’s Securities and Exchange Commission, or SEC, filings and reports, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as the risks and uncertainties associated with the Chapter 11 proceedings generally. Sangamo cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read Sangamo’s filings with the SEC, available at www.sec.gov, for additional discussion regarding the risks and uncertainties applicable to statements contained herein. These forward-looking statements speak only as of the date of this press release, and Sangamo undertakes no obligation to update or revise any of these statements, except as required by law.

Contacts
Investor Relations and Media Inquiries
ir@sangamo.com
media@sangamo.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When does Sangamo expect the ST-503 auction to finish?

Sangamo expects the ST-503 auction to be completed in the fourth quarter of 2026. The program is being evaluated in the Phase 1/2 STAND study for intractable pain due to small fiber neuropathy.

How much cash did Sangamo receive from its completed asset sales?

Sangamo received $163.55 million in aggregate gross cash proceeds at closing. PTC acquired ST-920 for $111 million in cash, plus up to $100 million in potential future regulatory milestone payments. Lilly acquired the specified platforms and ST-506 for $50 million in cash.

What preclinical findings did Sangamo report for ST-503?

A single administration into the spinal fluid reduced Nav1.7 expression and pain hypersensitivity in animal models. Nonclinical studies also found ST-503 was well tolerated in nonhuman primates, with substantial Nav1.7 reduction and no observed off-target effects. These findings were from animal studies, not human trial results.