Sangamo Restructures, Narrows Focus, Cuts Staff, and Plans Shutdown of Headquarters
November 2, 2023
Rare Daily Staff
Sangamo Therapeutics, in its third quarter 2023 financial results, said it is continuing to streamline the company and making progress on its strategic transformation and a corresponding restructuring of operations and workforce reduction.
“The process of streamlining Sangamo’s pipeline has been accelerated within today’s challenging economic environment and we have had to make difficult decisions to defer further investments and seek collaboration partners or direct investment in both our Fabry gene therapy and CAR-Treg cell therapy programs,” said Sandy Macrae, CEO of Sangamo.
The restructuring represents a further step towards simplifying the Sangamo organization and focusing on its epigenetic regulation therapies treating neurological diseases and its novel AAV capsid delivery technologies. Sangamo is deferring new investments in its Fabry and CAR-Treg programs beyond what is currently committed and is actively seeking collaboration partners or direct investors in both. In addition, Sangamo expects to close its Brisbane, California facility in early 2024 to conserve cash resources, and will transition its headquarters to its Richmond, California facility as of January 1, 2024. As a result of this restructuring, Sangamo is reducing its U.S. workforce by approximately 40 percent, or approximately 162 roles.
In connection with the restructuring, D. Mark McClung, executive vice president, chief operating officer, and Jason Fontenot, senior vice president, chief scientific officer will be leaving the company on January 2, 2024.
The restructuring and workforce reductions, in combination with other potential cost reductions, are anticipated to reduce annual operating expenses approximately 50 percent, sufficient to fund its planned operations into the third quarter of 2024.
Photo: Sandy Macrae, CEO of Sangamo Therapeutics
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