Sangamo Therapeutics reported a net loss of $34.9 million for the third quarter ended September 30, 2025, a reversal from the $10.7 million profit recorded in the same period a year earlier. Revenue fell to $0.6 million, down from $49.4 million in Q3 2024, and missed analyst consensus of $34.4 million by 98.8 percent. Earnings per share were –$0.11, a loss that exceeded the consensus estimate of $0.0002 by $0.1102.
The dramatic revenue collapse is almost entirely attributable to the termination of a one‑time licensing arrangement with Genentech that generated $49.4 million in Q3 2024. With that collaboration revenue gone, Sangamo has no other commercial streams in the quarter, and its pipeline candidates are still in early‑stage clinical development, so no substitute revenue was generated.
The loss in earnings is driven by the revenue shortfall and by higher-than‑expected clinical and manufacturing spend for the Fabry disease program. GAAP operating expenses were $36.1 million, slightly lower than the prior year but still high relative to the revenue base. The company’s cost‑control measures—modest reductions in personnel and licensing costs—were insufficient to offset the loss of collaboration revenue, resulting in a net loss.
Cash and cash equivalents stood at $29.6 million as of September 30, 2025. Management indicated that this balance, together with proceeds from an at‑the‑market (ATM) offering and an $18 million upfront payment from Lilly, should fund operations through the first quarter of 2026. The narrow cash runway and the need for additional financing underscore a potential going‑concern risk if further capital is not secured.
Sangamo reiterated its 2025 operating‑expense guidance of $135 million to $155 million (GAAP) and $125 million to $145 million (non‑GAAP). The guidance remains unchanged, signaling confidence that cost discipline will be maintained while the company continues to invest in its neurology and rare‑disease pipelines.
The company also highlighted progress on its clinical programs: two sites for the Phase 1/2 STAND study in chronic neuropathic pain have been activated and patient recruitment is underway; development of the ST‑503 and ST‑506 programs continues; and the Fabry disease therapy (ST‑920) is advancing toward a potential Biologics License Application in 2026.
CEO Sandy Macrae said, “We continued to advance our clinical and pre‑clinical pipeline this quarter and are excited to now be recruiting and enrolling patients in our first ever neurology clinical study following the activation of the first two clinical sites in the Phase 1/2 STAND study in chronic neuropathic pain.”
Analysts noted that the revenue miss of 98.8 percent and the EPS miss of $0.1102 were significant disappointments, reflecting the loss of collaboration revenue and the continued heavy investment in early‑stage programs. Despite the negative financials, the company’s progress on the Fabry therapy and the partnership with Lilly—providing an $18 million upfront payment and the potential for up to $1.4 billion in milestone payments—are viewed as positive tailwinds for future growth.
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