Sangamo raises $25M at 17% discount, diluting shareholders 15.8%
Strategic funding provides working capital as clinical-stage biotech advances key pipeline programs toward regulatory submissions
Sangamo Therapeutics announced a $25 million underwritten offering priced at a 17% discount to market value, triggering a significant dilution for existing shareholders as the clinical-stage biotechnology company seeks to bolster its cash position amid advancing pipeline programs.
The Brisbane, California-based genomic medicine company priced the combined offering at $0.4719 per share of common stock and accompanying warrant, representing a substantial discount to Monday's closing price of $0.5679 on Nasdaq. The offering consists of 35.2 million shares of common stock and pre-funded warrants to purchase 17.8 million additional shares, along with warrants to purchase 53 million more shares, according to the regulatory filing.
The approximately 53 million new shares represent roughly 15.8% dilution to existing shareholders, based on Sangamo's current outstanding shares of approximately 336.5 million. The company also agreed to reduce the exercise price on outstanding warrants held by an investor for 23.8 million shares from $1.00 to $0.4719 and extend their term to five and a half years.
Proceeds from the offering will be used for working capital and general corporate purposes, a move that comes as Sangamo reported $29.6 million in cash and cash equivalents as of September 30, 2025. In its third-quarter earnings report, the company indicated that existing cash, combined with a license fee received from Pfizer in October and proceeds from an at-the-market offering program, would be sufficient to fund planned operations into the first quarter of 2026.
The capital raise coincides with what analysts describe as a critical inflection point for Sangamo's pipeline. In December 2025, the company initiated a rolling submission of a Biologics License Application (BLA) to the U.S. Food and Drug Administration for ST-920 (isaralgagene civaparvovec) for Fabry disease. The FDA has accepted positive mean annualized estimated glomerular filtration rate slope data from the STAAR study as an endpoint to support accelerated approval.
Additionally, Sangamo's ST-503 program for small fiber neuropathy received Fast Track Designation from the FDA in December, potentially expediting its development pathway. The company is also advancing clinical programs in chronic neuropathic pain and prion disease, with a Clinical Trial Application for the latter expected in the first quarter of 2026.
Despite these pipeline advances, Sangamo's financial metrics reflect the challenges typical of clinical-stage biotechnology companies. The company reported trailing twelve-month revenue of $32.9 million, down 98.8% year-over-year, with earnings per share of negative $0.45. The stock is currently trading near its 52-week low of $0.36, having fallen sharply from its yearly high of $1.40, giving the company a market capitalization of approximately $180 million.
Analysts maintain a relatively bullish outlook on the shares despite the current valuation. The consensus target price stands at $3.81, with two analysts rating the stock a buy and three recommending hold, according to market data. This target represents more than sixfold upside from current levels, reflecting potential value if the company's pipeline programs successfully navigate regulatory approval.
Cantor and Wells Fargo Securities are serving as joint book-running managers for the offering. The accompanying warrants issued in the transaction have an exercise price of $0.4719 per share, become exercisable six months from issuance, and expire five and a half years from issuance.
The pricing structure and significant dilution highlight the financing challenges facing clinical-stage biotechnology companies, particularly those with substantial cash burn rates and extended timelines to potential commercialization. Sangamo's ability to execute on its pipeline milestones while managing its cash runway will be closely watched by investors in the coming quarters.