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.
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