Filing Alert: Sangamo Therapeutics Chapter 11

Update (Jun. 23, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Sangamo Therapeutics, Inc.

Sangamo Therapeutics, Inc., a Richmond, CA-based genomic medicine company engaged in the research and development of medicine for patients with serious neurological diseases, filed for Chapter 11 protection on Jun. 23 in the U.S. Bankruptcy Court for the District of Delaware.

The filing aims to effectuate a dual-track, court-supervised Section 363 sale process anchored by two stalking horse bidders. Under the Lilly Stalking Horse APA, Eli Lilly's wholly owned subsidiary, Merope Acquisition Sub, LLC, will serve as stalking horse for the "Lilly Assets" — the debtor's core technology platforms (including the SIFTER AAV capsid engineering platform, the proprietary STAC-BBB capsid, and related next-generation variants), the preclinical Prion Disease Program (ST-506), related IP, and the right to future milestone and royalty payments under its Outlicensing Agreements — for $50 million plus the assumption of certain liabilities. A parallel Astellas Stalking Horse APA names Astellas Gene Therapies, Inc. as stalking horse for the clinical-stage Fabry Disease Program (ST-920, isaralgagene civaparvovec) for $25 million cash at closing plus up to $25 million in milestone consideration. Assets outside both transactions — the Chronic Neuropathic Pain (ST-503), Hemophilia A (SB-525), and Sickle Cell (BIVV003) programs and the Tregs platform — will be marketed postpetition, with the debtor seeking authority to designate one or more additional stalking horse bidders.

Notably, the debtor enters Chapter 11 with no funded debt — no prepetition secured debt, unsecured notes, or credit facility obligations — its distress driven by revenue erosion and the resulting liquidity crisis rather than balance-sheet leverage. The company attributes its insolvency to the timing of its 2023 pivot to a neurology-focused genomic medicine platform, which coincided with the loss of its principal collaboration revenue streams amid a post-COVID biotech funding contraction: Biogen and Novartis terminated for convenience in 2023, the Kite collaboration lapsed in 2024, and Pfizer's December 2024 termination for convenience extinguished an anticipated $220 million in milestone payments and triggered an approximately 50% stock decline that effectively foreclosed equity financing. Revenues fell more than 77%, from $176.2 million in 2023 to $39.6 million in 2025, against aggregate net losses exceeding $478 million across FY2023–2025; cash, equivalents, and marketable securities contracted from $307.5 million at year-end 2022 to $20.9 million at year-end 2025, with going-concern qualifications in each successive filing and a Nasdaq delisting effective May 2026 (shares now trade on the OTCQB as "SGMO"). A multi-year, dual-bank marketing effort (Bank of America, then Evercore) to secure a Fabry commercialization partner generated three term sheets but no closeable transaction, leaving an in-court sale as the only viable means to monetize the platform.

To fund the cases and the dual-track sale process, the debtor has secured a $30 million non-amortizing, senior secured superpriority DIP term loan from Northridge ATM, LLC (affiliated with JMB Capital Partners), selected following an accelerated, Raymond James-run process that solicited twenty-one financing parties. The facility bears interest at 12.0% per annum (plus a 2.0% default premium), is available in multiple draws — $10.5 million upon entry of the interim order and the full amount upon the final order — matures the earlier of December 30, 2026 or specified plan, sale, or conversion events, and will encumber substantially all of the debtor's assets. With only approximately $5.5 million of cash on hand at filing and prepetition liabilities consisting principally of GUCs — roughly $19.2 million in trade payables, $4.0 million in lease obligations, and various accrued employee claims — the DIP provides the liquidity bridge to a value-maximizing sale and an orderly wind-down of the residual estate.

Sangamo Therapeutics, Inc. reports $100 million to $500 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-10989.

Top Unsecured Claims

Key Parties

Delaware Bankruptcy Counsel:

• Daniel J. DeFranceschi
  Richards, Layton & Finger, P.A.
  Email: defranceschi@rlf.com

Lead Bankruptcy Counsel:

• Cooley LLP

Financial Advisor:

• MERU, LLC

Investment Banker:

• Raymond James & Associates, Inc.

Signatories:

• Dr. Alexander Macrae, M.B., Ch.B., Ph.D. – Chief Executive Officer

Claims Agent:

• Kurtzman Carson Consultants LLC d/b/a Verita Global

Equity Security Holders:

• Armistice Capital, LLC – 12.79% Equity Interest
• Yorkville Advisors Global LP – 11.26% Equity Interest

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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