Sangamo Files for Bankruptcy, Lilly and Astellas Line up as Lead Bidders for Assets

Rare Daily Staff

Sangamo Therapeutics has filed for Chapter 11 bankruptcy protection and entered into asset sale agreements with Eli Lilly and Astellas Pharma, marking a significant restructuring effort for the genomic medicine company as it seeks to maximize value through a court-supervised auction process.

The biotech said it will pursue sales of substantially all its assets under the U.S. Bankruptcy Code. Lilly and Astellas have agreed to serve as stalking horse bidders, setting baseline offers intended to anchor and stimulate competitive bidding during the process.

Under the agreements, Lilly would acquire a broad swath of Sangamo’s core technology platforms, including its capsid delivery system, zinc finger platform, and modular integrase (MINT) platform, along with the company’s prion disease candidate ST-506. Astellas has agreed to acquire Sangamo’s Fabry disease gene therapy, ST-920.

Other assets including the clinical-stage ST-503 program for chronic neuropathic pain, the hemophilia A gene therapy giroctocogene fitelparvovec, and Sangamo’s cell therapy and regulatory T cell programs are not covered by the initial bids and will remain available to other buyers in the auction.

Sangamo CEO Sandy Macrae said the company initiated the process following a comprehensive review of strategic alternatives.

“We believe this process provides a clear framework to pursue value-maximizing transactions,” he said, adding that the involvement of two large pharmaceutical companies underscores continued industry interest in Sangamo’s assets.

To maintain operations during the restructuring, Sangamo has secured a commitment for debtor-in-possession financing from Northridge ATM and its affiliates. The company said the financing, subject to court approval, is expected to provide sufficient liquidity to fund operations, support the Chapter 11 process, and meet post-petition obligations.

Sangamo has filed motions with the U.S. Bankruptcy Court for the District of Delaware seeking authorization to continue normal business operations during the proceedings.