Sangamo picks Lilly and PTC as buyers in bankruptcy auction

Sangamo Therapeutics (OTCID Basic Market: SGMOQ) has selected winning bidders in a court-supervised auction under Section 363 of the U.S. Bankruptcy Code, yielding approximately $163.55 million in cash at closing and up to $100 million in potential future milestone payments, according to a press release.

PTC Therapeutics was selected as the winning bidder for Sangamo's Fabry disease program, isaralgagene civaparvovec (ST-920), for $111 million in cash at closing. The deal includes up to $100 million in potential milestone payments: $80 million upon receiving accelerated FDA approval and $20 million upon full or traditional FDA approval.

Eli Lilly and Company was selected to acquire Sangamo's capsid delivery, zinc finger, and modular integrase (MINT) platforms, as well as its prion disease program (ST-506), for $50 million in cash at closing. Various other bidders were selected for certain tools and equipment for a combined $2.55 million in cash.

The proposed sales remain subject to final approval by the U.S. Bankruptcy Court for the District of Delaware (Case No. 26-10989). Sale hearings are expected in the third quarter of 2026. The transaction with Lilly is expected to close on or about September 4, 2026, while the PTC Therapeutics deal is pending completion of review under the Hart-Scott-Rodino Antitrust Improvements Act.

Proceeds from the transactions will be administered and distributed in accordance with the Chapter 11 process and applicable court orders.

Sangamo said it continues to solicit offers for remaining assets, including clinical-stage programs ST-503 for chronic neuropathic pain and giroctocogene fitelparvovec for hemophilia A, as well as its cell therapy and regulatory T cell assets.

Sangamo's legal counsel is Cooley LLP and Richards, Layton & Finger, PA. Its financial advisor is MERU, LLC, and its restructuring banker is Raymond James.

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