Gene Editing Pioneer Sangamo Files for Chapter 11 Bankruptcy; Agrees to Sell Assets

A journey that has lasted more than 30 years for Sangamo Therapeutics, a pioneering gene editing biotech company in the Bay Area, has reached an unwanted milestone as the company filed for Chapter 11 bankruptcy protection. Concurrent with its voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, Sangamo simultaneously entered into two separate asset sale agreements: Eli Lilly has agreed to acquire Sangamo’s capsid delivery platform, zinc finger nuclease (ZFN) platform, modular integrase (MINT) platform, and prion disease program, ST-506. Astellas Pharma has also agreed to take over Sangamo’s Fabry disease program, isaralgagene civaparvovec (ST-920).

To clinch the deals, Lilly and Astellas have agreed to be “stalking horse” bidders when Sangamo’s assets are sold in a future bankruptcy court auction. The stalking horse bids do not include 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, which are expected to remain available to interested bidders at the auction. “We believe this process provides a clear framework to pursue value-maximizing transactions,” said Sandy Macrae, Sangamo’s CEO, highlighting the strategic interest in their assets.

Founded by Ed Lanphier in 1995, Sangamo became an early developer of ZFNs, one of the first established gene editing platforms. Despite promising clinical data from its Phase I/II STAAR trial in Fabry disease, Sangamo has faced significant challenges, including a $31-million net loss and a 78% revenue drop year over year. The company’s restructuring efforts included workforce reductions and a narrowed pipeline focus on developing epigenetic regulation therapies and novel adeno-associated virus (AAV) capsid delivery technologies. This bankruptcy filing marks a significant shift in the landscape of gene editing, underscoring the volatility and competitive pressures faced by biotech firms in this rapidly evolving sector.