Sangamo Therapeutics, a pioneer in gene editing, has filed for Chapter 11 bankruptcy. The company has simultaneously struck deals with Eli Lilly and Astellas Pharma to sell its core platforms and programs.
Lilly will acquire Sangamo's capsid delivery platform, zinc finger nuclease platform, modular integrase platform, and the prion disease program ST-506. Astellas, meanwhile, will take over the Fabry disease gene therapy program isaralgagene civaparvovec (formerly ST-920). Both pharma giants are acting as “stalking horse” bidders, meaning they set the baseline for a future bankruptcy court auction of Sangamo's remaining assets.
The bankruptcy marks a dramatic fall for a company once at the forefront of genome editing. Despite pioneering zinc finger nuclease technology, Sangamo struggled to translate its science into approved products and sustained revenue, leading to its current financial distress.
For Lilly and Astellas, the acquisitions provide a cost-effective way to bolster their genetic medicine pipelines. The stalking horse structure ensures the assets have a guaranteed buyer, though other parties may still bid at auction. The transactions are subject to court approval.
A significant caveat remains: the bankruptcy auction could change the final ownership of Sangamo's assets. If a higher bid emerges, Lilly and Astellas may need to match it or walk away, leaving the company's technology and programs in flux.