Sangamo Therapeutics Inc SGMO announced cutting 27% of its workforce, prioritizing its pipeline, and changing its corporate structure to save about $31 million to fund operations for at least 12 months.
Sangamo is reducing U.S. workforce by approximately 27%, or 120 roles. These actions are in addition to the previously announced portfolio prioritization, which resulted in the decision to seek a partner for the sickle cell disease program. Andrew Ramelmeier, EVP of technical operations, will also leave the company in July.
Related: Two Big Pharma Companies Bow Out Of Neurology Drug Partnerships With Sangamo.
The company plans to focus on three areas: Fabry disease treatment, CAR-Treg therapy for kidney transplantation, and the gene Nav 1.7.
"We are therefore announcing a sharpened strategic focus, prioritizing our investments in our most promising programs," CEO Sandy Macrae said in a news release. "This has led to difficult, but necessary, decisions to step away from certain pre-clinical assets, shrink parts of our infrastructure and redeploy investments towards realizing the full potential of what we believe are our most valuable programs."
Sangamo says the Phase 1/2 Fabry study continues to enroll and dose patients, alongside preparations for a potential Phase 3 trial expected to commence by the end of 2023.
Nav1.7 to treat chronic neuropathic pain as the flagship program in Sangamo's newly prioritized wholly-owned neurology pipeline, with an IND submission expected in 2024.
Sangamo expects to have between $5 million and $7 million in one-time restructuring costs in Q2 and Q3 of 2023.
Price Action: SGMO shares are trading 2.48% higher at $1.65 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
