Sangamo Therapeutics 2025 Q1 Earnings Misses Targets with 37.7% Net Loss Reduction

Sangamo Therapeutics (SGMO) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The Richmond, California-based company missed expectations, with a net loss of 14 cents per share compared to the average analyst estimate of 11 cents. Despite this, Sangamo narrowed its net loss by 37.7% compared to the same quarter last year. The company maintained its guidance, expecting to extend its cash runway into late Q3 2025 through an equity offering. Sangamo continues to focus on securing a Fabry commercialization partnership to fund its neurology pipeline.

Revenue
Sangamo Therapeutics reported a remarkable increase in total revenue, which surged by 1238.3% to reach $6.44 million in Q1 2025, a significant rise from $481,000 in Q1 2024. This growth was attributed primarily to $5.0 million in revenue from a collaboration agreement with Pfizer and an additional $1.0 million from a license agreement with Sigma-Aldrich Corporation.

Earnings/Net Income
Sangamo Therapeutics narrowed its losses to $0.14 per share in Q1 2025, an improvement from a $0.27 loss per share in the same period last year, marking a 48.1% enhancement. The company's net loss was reduced to $30.60 million, a 37.7% improvement from the $49.09 million loss reported in Q1 2024. The reduction in net loss is promising despite missing market expectations.

Price Action
The stock price of Sangamo Therapeutics jumped 8.28% during the latest trading day, climbed 3.72% over the most recent full trading week, and rose 6.88% month-to-date.

Post-Earnings Price Action Review
The post-earnings price action review suggests a strategy of buying SGMO stock following revenue misses and holding for 30 days to assess performance. This approach involves gathering historical data on SGMO's stock price, earnings reports, and revenue figures, with a focus on instances of revenue shortfall. The strategy defines the revenue miss as a buying opportunity, with the 30-day holding period starting the day after the revenue report becomes public. The performance of this strategy is analyzed against a buy-and-hold benchmark, tracking the percentage change in SGMO's stock price during the 30-day period. The analysis includes factors such as average percentage change, drawdown, and overall profitability, while considering risks like subsequent earnings reports or shifts in investor sentiment. Backtesting this strategy assesses its effectiveness under varying market conditions, aiding in informed trading decisions.

CEO Commentary
Sandy Macrae, Chief Executive Officer, expressed satisfaction with the company's progress, highlighting the signing of a third capsid license agreement with Eli Lilly, affirming Sangamo's status as a collaborator of choice in neurotropic capsids. He emphasized advancements in the neurology pipeline, particularly the preparations for ST-503 and ST-506 studies. Macrae noted significant derisking milestones in the Fabry program, with a pivotal data readout expected soon. He underscored the importance of securing adequate capital to support ongoing initiatives and reiterated the company's commitment to finding a suitable commercial partner for the Fabry program, maintaining an optimistic outlook on future partnerships and funding opportunities.

Guidance
Sangamo Therapeutics anticipates a BLA submission for ST-920 as early as Q1 2026, contingent on achieving a positive pivotal data readout by the end of Q2 2025. The company expects to extend its cash runway through an equity offering, potentially funding operations into late Q3 2025. The CEO conveyed the goal of securing a Fabry commercialization partnership that would also fund the neurology pipeline, emphasizing the need for sustainable funding and operational efficiency to reach critical clinical milestones in their pipeline programs.

Additional News
In recent developments, Sangamo Therapeutics announced a significant capsid license agreement with Eli Lilly, aiming to deliver genomic medicines for up to five central nervous system disease targets. The agreement includes an $18 million upfront license fee for the first target, with the potential to earn up to $1.4 billion in additional licensed target fees, milestone payments, and tiered royalties on potential net sales. Additionally, Sangamo has announced the pricing of a $23 million underwritten registered direct equity offering, expected to close on May 14, 2025. This move will support working capital and general corporate purposes. The company is actively engaging in business development discussions for Fabry disease commercialization and other collaborations.