Sangamo Therapeutics Reports 1,238% Revenue Increase to $6.4 Million in Q1 2025

Sangamo Therapeutics, Inc. reported a significant increase in revenue for the first quarter of 2025, generating $6.4 million compared to just $481,000 in the same period last year. This 1,238% increase was primarily driven by revenue from a collaboration agreement with Pfizer, which included a $5 million payment related to a sublicense transfer. Despite this revenue growth, the company continues to face substantial financial challenges, posting a net loss of $30.6 million for the quarter, an improvement from the $49.1 million loss reported in the first quarter of 2024.

Operating expenses for Sangamo decreased by 31% to $36.1 million, down from $52 million in the prior year. This reduction was largely attributed to lower research and development costs, which fell to $26 million from $35.9 million, reflecting a strategic shift and workforce reductions as part of ongoing restructuring efforts. General and administrative expenses also decreased by 15% to $10.1 million, driven by lower personnel costs and restructuring charges. The company did not incur any impairment charges in the latest quarter, contrasting with the previous year when it recognized a $4.3 million impairment related to long-lived assets.

Sangamo's financial position remains precarious, with cash and cash equivalents declining to $25.2 million as of March 31, 2025, down from $41.9 million at the end of 2024. The company has expressed substantial doubt about its ability to continue as a going concern, citing the need for significant additional funding to support its operations and research initiatives. Management has indicated that the current cash resources, combined with recent upfront payments from new licensing agreements, will only sustain operations into the third quarter of 2025.

Strategically, Sangamo has been focusing on its transformation into a neurology-focused genomic medicine company. In April 2025, the company entered into a global capsid delivery license agreement with Eli Lilly, which includes an $18 million upfront payment and potential future milestone payments totaling up to $1.4 billion. This agreement is part of Sangamo's broader strategy to leverage its proprietary technologies in developing treatments for serious neurological diseases. The company is also actively seeking commercialization partners for its Fabry disease program, which is critical for its financial stability moving forward.

Looking ahead, Sangamo plans to continue advancing its preclinical programs, including those targeting chronic neuropathic pain and prion disease, while also preparing for potential regulatory submissions for its Fabry disease treatment. However, the company acknowledges that its ability to execute these plans is contingent upon securing adequate funding and partnerships, which remain uncertain in the current economic climate.