Sangamo BioSciences Inc. Reports Operating Results (10-Q)
Sangamo Biosciences Inc. has a market cap of $255.2 million; its shares were traded at around $5.67 with and P/S ratio of 11.5. SGMO is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Highlight of Business Operations: Revenues from our corporate collaboration and strategic partnering agreements were $6.2 million for the three months ended March 31, 2010, compared to $3.2 million in the corresponding period in 2009. The increase in collaboration agreement revenues was primarily attributable to increased revenues of $4.8 million in connection with our expanded license agreement with Sigma, partially offset by decreased revenues of $1.6 million in connection with our research license and commercial option agreement with DAS. Research grant revenues were $449,000 for the three months ended March 31, 2010, compared to $0 in the corresponding period in 2009. Research grant revenues for the three months ended March 31, 2010 were primarily related to our partnership with JDRF.
Research and development expenses were $7.4 million for the three months ended March 31, 2010, compared to $7.3 million in the corresponding period in 2009. The increase in research and development expenses was primarily attributable to increased salaries and benefits of $217,000, increased stock-based compensation expenses of $225,000 and increased consulting of $149,000. This was partially offset by decreased clinical studies expenses of $254,000, primarily associated with our diabetic neuropathy program, and decreased manufacturing expenses of $167,000, primarily related to our Phase 1 glioblastoma clinical trial.
General and administrative expenses were $3.3 million for the three month period ended March 31, 2010 and $2.9 million for the corresponding period in 2009. The increase in general and administrative expenses was primarily attributable to increased stock-based compensation expenses of $156,000 and increased corporate and patent legal expenses of $156,000.
As of March 31, 2010, we had cash, cash equivalents, marketable securities and interest receivable totaling $77.0 million compared to $85.3 million as of December 31, 2009. The decrease was primarily attributable 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.
Net cash used in investing activities was $1.3 million for the three months ended March 31, 2010, compared to net cash provided by investing activities of $2.4 million for the corresponding period in 2009. Cash flows from investing activities for both periods primarily relates to purchases and maturities of investments.
Net cash provided by financing activities was $316,000 for the three months ended March 31, 2010 and primarily related to proceeds from the issuance of common stock upon exercise of stock options. Net cash used in financing activities for the three months ended March 31, 2009 was $25,000 and primarily related to the repurchase of common stock.
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