Sangamo BioSciences, Inc. (



Q2 2011 Earnings Conference Call

July 27, 2011 17:00 ET


Dr. Elizabeth Wolffe – Senior Director of Corporate Communications

Edward Lanphier – President and Chief Executive Officer

Geoff Nichol – Executive Vice President, Research and Development

Ward Wolff – Executive Vice President and Chief Financial Officer


Charles Duncan – JMP Securities

Liana Moussatos – Wedbush Securities

Ed Tenthoff – Piper Jaffray

Joseph Schwartz – Leerink Swann

Alastair Mackay – GARP Research



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Good afternoon and welcome to the Sangamo BioSciences Teleconference to discuss Second Quarter 2011 Financial Results. This call is being recorded. I would now pass you over to the coordinator of this event, Dr. Elizabeth Wolffe, Senior Director of Corporate Communications.

Dr. Elizabeth Wolffe – Senior Director of Corporate Communications

Thank you very much. Good afternoon and thank you for joining Sangamo’s management team on our conference call to discuss the company's second quarter 2011 financial results. Present during this call are Edward Lanphier, President and Chief Executive Officer; Ward Wolff, Executive Vice President and Chief Financial Officer; Geoff Nichol, Executive Vice President, Research and Development; Dale Ando, Vice President, Therapeutic Development and Chief Medical Officer; and Philip Gregory, Vice President, Research and Chief Scientific Officer.

Following this introduction, Edward will highlight recent activities, Ward will briefly review second quarter financial results for 2011 and our current financial guidance. And finally, Edward will summarize the status of our ongoing ZFP Therapeutic programs and our goals for the remainder of 2011. Following that, we'll open up the call for questions.

As we begin, I'd like to remind everyone that the projections and forward-looking statements that we discuss during this conference call are based upon the information that we currently have available. This information will likely change over time. By discussing our current perception of the market and the future performance of Sangamo with you today, we are not undertaking an obligation to provide updates in the future.

Actual results may differ substantially from what we discuss today and no one should assume at a later date that our comments from today are still valid. We alert you to be aware of risks that are detailed in the documents that the company files with the Securities and Exchange Commission, specifically our quarterly reports on Form 10-Q and our Annual Report on Form 10-K.

These documents include important factors that could cause the actual results of the company’s operations to differ materially from those contained in our projections or forward-looking statements.

Now, I'd like to turn the call over to Edward.

Edward Lanphier – President and Chief Executive Officer

Thank you, Liz. And thank you all for joining us for our conference call to discuss our second quarter results for 2011.

Let me begin by briefly recapping a few of our recent highlights. Early in the quarter we completed an underwritten public offerings from $6.7 million share of our common stock, which resulted in an net proceeds to the company of approximately $15 million. This additional capital has significantly strengthened our balance sheet and enables us to more aggressively advance our preclinical and clinical programs as well as strengthening our position and flexibility in future therapeutic partnering discussions. The second quarter was also are particularly successful period of Sangamo from a research and development perspective, as well as for grants and publications. To highlight this latter, Sangamo scientists were awarded several high profiled grants to support research and preclinical studies using ZFP nucleases towards ZFN.

In early July, a $7.9 million grant was awarded by the National Institute of Health to the Scripps Translational Science Institute to conduct the nation’s first ever heart-based disease in a dish research program in collaboration with Sangamo scientists. Our collaborator at Scripps led by Dr. Eric Topol will use induced pluripotent stem cells or iPS cells, which a stem cells that are created from mature cell types, such as skin cell to recreate a patients own heart cell. These cells can be grown in the laboratory and our ZFN-mediated genome editing technology will be used to specifically remove a region of the genome that is known to put a patient at risk for coronary heart disease.

With only this region specifically removed, but the rest of the cells genes in common modified cells can be compared with the original iPS cell and the biological impact of the genetic change can be accurately observed. A second high profile collaboration was announced this quarter, the Martin Delaney Collaboratory project was created as part of an initiative by the NIH to fund the evaluation of new strategies for curing HIV infection.

A team of institutions including Sangamo the Fred Hutchinson Cancer Research Center, City of Hope and the University of Washington were awarded $20 million to fund animal studies to evaluate dosing of our ZFN CCR5 modified stem cells as well as methods to directly attack reservoirs of HIV and eradicate the virus. These experiments directly complement out ongoing stem cell program in HIV, which is funded by the California Institute for Regenerative Medicine or CIRM. Both of these collaborations focus on important areas of research that will directly aid development of ZFP Therapeutics for significant unmet medical needs. In addition, the financial award represents and quantifies a growing appreciation of the power and potential of our ZFP Therapeutics platform.

Sangamo also published a record number of scientific papers this quarter, several of them in high impact journals that generated significant attention and interest in both the pharmaceutical industry and academia. The publications include data published in the journal nature from our preclinical hemophilia B program. The study demonstrated permanent correction of the human factor IX gene in a mouse model of the disease, following a single systemic administration of our factor IX specific zinc finger nucleases. This ZFN gene correction process resulted in functionally relative levels of circulating factor IX protein in the blood stream capable of correcting the coagulation defect characteristic of hemophilia. This modification was permanent and was observed for the eight months of which the animals were tested.

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