Sangamo Therapeutics, Inc. has filed for bankruptcy days after announcing its plans to evaluate strategic alternatives for enhanced stakeholder value. The company currently faces over $1 million in unsecured claims. The company’s first-quarter financial results also point to ongoing financial challenges.
The company will continue operating as a debtor-in-possession during the Chapter 11 proceedings. Operations related to its neurology pipeline and other projects are expected to continue as normal under the court supervision.
Sangamo Therapeutics, Inc. Files for Bankruptcy
Case filings, as available on RK Consultants, show that the company submitted its petition on June 23, 2026.
Sangamo Therapeutics, Inc. currently has both assets and liabilities in the range of $100 million to $500 million. Filing details add that the company has over $115 million in total debt.
Attorney Daniel J. DeFraneschi of Richards, Layton & Finger, P.A., is the legal counsel for Sangamo Therapeutics, Inc. Other professionals retained by the company include:
- Cooley LLP – lead bankruptcy counsel
- MERU, LLC – financial advisor
- Raymond James & Associates, Inc. – investment banker
- Kurtzman Carson Consultants LLC (d/b/a Verita Global) – noticing and claims agent
Filing Comes After Strategic Exploration
The filing comes less than a month after the company announced it was exploring strategic alternatives to maximize stakeholder value.
In a June 8 news release, the company said it had retained Raymond James to evaluate strategic alternatives.
The announcement came as the company continued advancing its gene therapy pipeline. This included its lead Fabry disease program (ST-920), which is currently being submitted to the U.S. Food and Drug Administration. The submission is happening under a rolling Biologics License Application process.
At the time, the company had not provided a timeline for completing the review process.
Case Related Details
A document titled ‘resolution of the board of directors’ shows that the company made a Chapter 11 filing as it was in the best interest of Sangamo Therapeutics, Inc. and its stakeholders.
The document states that the company will operate as a debtor-in-possession and that its lender will receive super-priority status. The arrangement is intended to provide liquidity for ongoing operations during the bankruptcy process. In addition, its lender will be the first one to be repaid once it has ample funds.
The company has entered into a stalking horse Asset Purchase Agreement with two entities. The first agreement is with Eli Lilly and Company for its capsid delivery platform, zinc finger platform, modular integrase (MINT) platform, and the prion disease program, ST-506.
The second agreement is made with Astellas Pharma Inc. for its for the Fabry disease program, isaralgagene civaparvovec, or ST-920.
Sandy Macrae, Chief Executive Officer of Sangamo Therapeutics said, “Following a comprehensive review of available alternatives, we believe this process provides a clear framework to pursue value‑maximizing transactions.”
“Our priority is to execute a disciplined and efficient sale process while supporting all of our stakeholders. We are also pleased to have signed agreements with two large pharmaceutical companies to serve as stalking horse bidders in the process, underscoring the strategic interest in our assets,” Macrae added.
The genomic medicine company is planning to carry out the asset sale transactions based on Section 363 of Chapter 11.
Case records show that Sangamo Therapeutics, Inc. currently has between 200 and 999 creditors in total. Out of these 20, the largest unsecured creditors have been listed in the petition. A collective sum of their unsecured claims is more than $1 million. Brammer Bio, LLC holds approximately $8.76 million in unsecured claims.
Court filings indicate that funds will be available for distribution to the unsecured creditors.
The corporate ownership statement listed in the petition shows that Armistice Capital, LLC holds 12.79% equity interest in the company. Yorkville Advisors Global LP holds 11.26% of equity interest.
A summary of the Chapter 11 petition is shared here:
- Filing Date: June 23, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of Delaware
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-10989
- Estimated Assets: Between $100,000,001 and $500 million
- Estimated Liabilities: Between $100,000,001 and $500 million
- Estimated Creditors: Between 200 and 999
- Reason for Filing: Restructure business and sell assets under court supervision
Declining Financial Results in Q1
According to the official financial results from the first quarter of 2026, Sangamo Therapeutics, Inc. lost about $31 million. During the same period last year, this value was estimated at $30.6 million.
Revenue declined from $6.4 million in the first quarter of 2025 to $1.4 million in the first quarter of 2026. The company attributed the decline primarily to the absence of a one-time payment received under a Pfizer-related agreement in the prior year. It also cited small declines in other licensing income.
In Q1 2026, the company’s spending was reported to be high at around $33 million in total operating costs. This was primarily due to research and development, along with costs related to the preparation of the Fabry disease gene therapy.
While the company’s cash at the end of March 2026 was slightly higher than the previous quarter, the company is expected to last only up to Q3 of this year. In addition, it is hoping to spend around $100 million to $130 million for the full year in 2026.
About the Company
Sangamo Therapeutics, Inc. operates as a genomic medicine company that focuses on developing gene and epigenetic therapies. These therapies are aimed at treating serious neurological diseases with limited or no available treatment options.
As of now, the company is growing a pipeline based on its zinc finger epigenetic regulator technology. The company is also developing a proprietary capsid discovery platform for improved delivery of genetic medicines.
The Chapter 11 case will allow the company to pursue asset sales and restructuring efforts under court supervision.
