RICHMOND, Calif. - Sangamo Therapeutics Inc. (OTCQB:SGMO) announced today that it has retained Raymond James as its financial advisor to evaluate strategic alternatives aimed at advancing its pipeline and maximizing stakeholder value.
The genomic medicine company is seeking to explore options for its assets, which include a Fabry disease gene therapy program and several platform technologies. The strategic review comes as the stock trades at $0.21, down 57% over the past six months, with the company’s market capitalization now at $89 million. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value estimate. Chief Executive Officer Sandy Macrae stated the company made the decision to explore alternatives to continue advancing these assets to patients in need.
The company’s lead asset, isaralgagene civaparvovec (ST-920), is an investigational gene therapy for Fabry disease. The registrational Phase 1/2 STAAR study has completed enrollment with 32 patients transitioned to long-term follow-up. Sangamo has initiated a rolling submission of a Biologics License Application to the FDA under the Accelerated Approval pathway, with the first two modules submitted.
The program has received Orphan Drug, Fast Track and RMAT designations from the FDA, according to the press release statement.
Sangamo’s pipeline also includes ST-503 for chronic neuropathic pain, with seven sites activated for a Phase 1/2 study, and ST-506 for prion disease, which is in clinical trial application enabling activities. The company has received FDA Fast Track designation for ST-503.
The company’s STAC-BBB capsid technology has been licensed to Genentech, Astellas and Eli Lilly, generating $88 million in license fees to date with potential future milestones and exercise fees of up to $4.6 billion, assuming exercise of all options and targets. The strategic review is particularly timely given that InvestingPro Tips highlight the company is quickly burning through cash, with levered free cash flow of negative $90 million over the last twelve months. Investors can access 12 additional ProTips and comprehensive financial analysis on the platform.
Sangamo stated that no timetable for completion of the strategic evaluation process has been set and that no agreement has been reached. The company does not intend to disclose further developments unless determined necessary.
Parties interested in discussing potential transactions with Sangamo were directed to contact the company’s business development team.
In other recent news, Sangamo Therapeutics reported its Q1 2026 earnings, revealing financial challenges. The company posted an earnings per share (EPS) of -$0.08, which was below the expected -$0.06. Additionally, Sangamo’s revenue came in at $1.4 million, significantly missing the forecasted $35.43 million. These results indicate a notable shortfall in both earnings and revenue projections. Despite these financial results, the stock experienced a pre-market increase, although it remains near its 52-week low. These developments highlight the company’s ongoing financial difficulties as it navigates current market conditions.
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