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Sangamo BioSciences Inc. Reports Operating Results (10-Q)

August 05, 2010 | About:
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10qk

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Sangamo BioSciences Inc. (SGMO) filed Quarterly Report for the period ended 2010-06-30.

Sangamo Biosciences Inc. has a market cap of $175.5 million; its shares were traded at around $3.89 with and P/S ratio of 7.9. SGMO is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP.

Highlight of Business Operations:

For the second quarter ended June 30, 2010, we incurred a consolidated net loss of $3.9 million, or $0.09 per share, compared to a net loss of $4.5 million, or $0.11 per share, for the same period in 2009. As of June 30, 2010, we had cash, cash equivalents, marketable securities and interest receivable totaling $69.3 million compared to $85.3 million as of December 31, 2009. As of June 30, 2010, we had an accumulated deficit of $200.5 million.

Revenues from our corporate collaboration and strategic partnering agreements were $6.2 million for the three months ended June 30, 2010, compared to $4.2 million in the corresponding period in 2009. The increase in collaboration agreement revenues was primarily attributable to increased revenues of $3.8 million in connection with our license agreement with Sigma, which was expanded in October 2009, partially offset by decreased revenues of $1.6 million in connection with our license agreement with DAS primarily due to a decrease in amortized revenue associated with the commercial option fee paid by DAS in June 2008. Research grant revenues were $315,000 for the three months ended June 30, 2010, compared to $513,000 in the corresponding period in 2009. The decrease in research grant revenues was primarily due to decreased revenues of $375,000 related to our grant from JDRF, partially offset by increased revenues of $167,000 in connection with our grant from CIRM, which we began recognizing during the three months ended June 30, 2010.

Revenues from our corporate collaboration and strategic partnering agreements were $12.4 million for the six months ended June 30, 2010, compared to $7.4 million in the corresponding period in 2009. The increase in collaboration agreement revenues was primarily attributable to increased revenues of $8.5 million in connection with our license agreement with Sigma, which was expanded in October 2009, partially offset by decreased revenues of $1.6 million in connection with our license agreement with DAS primarily due to a decrease in amortized revenue associated with the commercial option fee paid by DAS in June 2008. Research grant revenues were $764,000 for the six months ended June 30, 2010, compared to $513,000 in the corresponding period in 2009. The increase in research grant revenues was primarily due to increased revenues of $167,000 related to our grant from CIRM.

General and administrative expenses were $6.5 million for the six months ended June 30, 2010, compared to $5.9 million in the corresponding period in 2009. The increase was primarily attributable to increased personnel related expenses of $466,000, including stock-based compensation, and increased legal patent expenses of $157,000.

Interest and other income, net, was $44,000 for the six months ended June 30, 2010, compared to $840,000 in the corresponding period in 2009. The decrease was primarily due to decreased foreign currency remeasurement gains of $436,000 related to the cash balance which was held at our wholly-owned UK subsidiary, Gendaq Limited, and decreased interest income of $361,000 due primarily to lower interest rates.

As of June 30, 2010, we had cash, cash equivalents, marketable securities and interest receivable totaling $69.3 million compared to $85.3 million as of December 31, 2009. The decrease was primarily attributable to capital required to fund our continuing operations, including advancement of our ZFP Therapeutic programs. Our most significant use of capital pertains to salaries and benefits for our employees and external development expenses, such as manufacturing and clinical trial activity, related to our ZFP Therapeutic programs. Our cash and investment balances are held in a variety of interest bearing instruments, including obligations of U.S. government agencies, U.S. treasury debt securities and money market funds. Cash in excess of immediate requirements is invested in accordance with our investment policy with a view toward capital preservation and liquidity.

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