Sangamo launches auction for pain program amid Chapter 11 proceedings

Sangamo Therapeutics, Inc. (OTCID Basic Market: SGMOQ) has initiated an auction process for its ST-503 program, a clinical-stage investigational treatment for chronic neuropathic pain caused by small fiber neuropathy (SFN). The auction is expected to conclude in the fourth quarter of 2026, according to a press release from the company.

ST-503 uses an adeno-associated virus vector to deliver an engineered zinc finger repressor designed to reduce expression of SCN9A, the gene encoding the Nav1.7 sodium channel involved in pain signaling. Seven sites have been activated in the Phase 1/2 STAND study evaluating the treatment's safety and efficacy. The U.S. Food and Drug Administration has granted ST-503 Fast Track designation.

SFN is estimated to affect at least 180,000 patients in the U.S., while peripheral neuropathies more broadly are estimated to affect nearly 40 million Americans.

Separately, Sangamo confirmed the closing of previously announced asset sales conducted under Section 363 of the U.S. Bankruptcy Code, generating $163.55 million in aggregate gross cash proceeds. PTC Therapeutics, Inc. acquired Sangamo's Fabry disease program, isaralgagene civaparvovec (ST-920), for $111 million in cash plus up to $100 million in potential future regulatory milestone payments. Eli Lilly and Company acquired Sangamo's capsid delivery, zinc finger and MINT platforms, along with the prion disease program ST-506, for $50 million in cash.

Following receipt of those proceeds, Sangamo repaid in full all outstanding amounts under its debtor-in-possession financing facility provided by Future Solutions Inc.

Sangamo is currently operating under court supervision in Chapter 11 bankruptcy proceedings.

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