Sangamo Therapeutics Enters Into Asset Sale Agreements with Lilly and Astellas
Sangamo intends to complete asset sale transactions through a voluntary Chapter 11 reorganization, in an effort to maximize business value for all stakeholders
Lilly and Astellas to serve as “stalking horse” bidders in a court-supervised auction process
Sangamo has secured commitment for debtor-in-possession (DIP) financing to support ongoing operations
RICHMOND, Calif., June 23, 2026 (GLOBE NEWSWIRE) -- Sangamo Therapeutics, Inc. (OTCQB Venture Market: SGMO), a genomic medicine company, today announced that it has entered into two separate asset sale agreements, one with Eli Lilly and Company (“Lilly”) for Sangamo’s capsid delivery platform, zinc finger platform, modular integrase (MINT) platform and the prion disease program, ST-506, and another with Astellas Pharma Inc. (“Astellas”) for the Fabry disease program, isaralgagene civaparvovec, or ST-920. Concurrent with the execution of these asset sale agreements, Sangamo has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware (the “Court”) to facilitate a court-supervised reorganization, which is expected to include the auction of substantially all of Sangamo assets.
To anchor 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 maximize value for all stakeholders through the Chapter 11 auction process. Certain other company assets, including the clinical-stage ST-503 program to treat chronic neuropathic pain, the giroctocogene fitelparvovec program to treat hemophilia A, and Sangamo’s cell therapy and regulatory T cell (Treg) assets, are not included in either stalking horse bid, and are also expected to remain available to interested bidders at the auction.
“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 Officer of Sangamo Therapeutics. “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 intends to conduct all asset sale transactions pursuant to Section 363 of Chapter 11 of the U.S. Bankruptcy Code, which allows interested parties to submit offers for any or all Sangamo assets, after which Sangamo would execute on transactions resulting in maximum asset value for all stakeholders. The proposed bidding procedures would allow for assets to be purchased free and clear of Sangamo’s indebtedness and other liens and interests. Sangamo’s objective in the Chapter 11 case is to maximize value for its stakeholders, which may be achieved through the sale of all or substantially all assets to the highest bidder or bidders.
Parties interested in discussing potential transactions with Sangamo should contact busdev@sangamo.com.
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.
Sangamo has filed a series of motions with the Court seeking to ensure the continuation of normal operations during this process. To support ongoing operations, Sangamo has secured a DIP financing commitment from Northridge ATM, LLC and its subsidiaries, affiliates, designees, and assignees (collectively, “Northridge”). Subject to Court approval, the DIP financing is expected to provide sufficient liquidity for Sangamo to operate in the ordinary course, fund the Chapter 11 process, and meet its financial obligations arising subsequent to the filing date.
Sangamo’s legal counsel is Cooley LLP and Richards, Layton & Finger, PA, its financial advisor is MERU, LLC, and its restructuring banker is Raymond James. Kurtzman Carson Consultants, LLC dba Verita Global is serving as the noticing and claims agent.
The petition was filed in United States Bankruptcy Court for the District of Delaware, Case No. [26-10989].
About Sangamo Therapeutics
Sangamo Therapeutics is a genomic medicine company dedicated to translating ground-breaking science into medicines that transform the lives of patients and families afflicted with serious neurological diseases who do not have adequate or any treatment options. Sangamo believes that its zinc finger epigenetic regulators are ideally suited to potentially address devastating neurological disorders and that its capsid discovery platform can expand delivery beyond currently available intrathecal delivery capsids, including in the central nervous system. 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 sell its assets pursuant to Chapter 11 of the U.S. Bankruptcy Code, including pursuant to the terms of the asset purchase agreements; expectations regarding the bidding procedures and sale process and the timing and outcome thereof; Sangamo’s intention and ability to continue operations during the Chapter 11 proceedings; Sangamo’s belief that the sale process provides a clear framework to pursue value‑maximizing transactions; expectations concerning the availability of the DIP financing and the sufficiency thereof; and other statements regarding Sangamo’s strategy and future operations, performance and prospects. 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: the approval by the Court of Sangamo’s first day motions; 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 in Sangamo’s Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and subsequent filings and reports that Sangamo makes from time to time with the SEC. Forward-looking statements contained in this announcement are made as of this date, and Sangamo undertakes no duty to update such information except as required under applicable law.
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