SANGAMO THERAPEUTICS Files for Chapter 11 Bankruptcy, Initiates Asset Sales
SGMO is trading near its 52-week low of $0.1 (10% below the low) on light trading volume (0.1× avg).
Summary
Sangamo Therapeutics has filed for Chapter 11 bankruptcy, signaling a severe financial crisis and the likely end of its current equity value, as it begins liquidating core assets through "stalking horse" agreements with Eli Lilly and Astellas.
Key Events · Legal and Risk Events · SGMO
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Chapter 11 Bankruptcy Filing
The company filed a voluntary petition for Chapter 11 bankruptcy on June 23, 2026, in Delaware, and will operate as a debtor-in-possession.
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Asset Sales Initiated
Entered into "stalking horse" agreements to sell technology platforms to Eli Lilly for $50 million and its Fabry Disease program to Astellas for $25 million upfront plus potential milestones, both subject to higher bids and court approval.
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Debtor-in-Possession (DIP) Financing Secured
Secured up to $30 million in senior secured DIP financing from Northridge ATM, LLC to fund post-petition operations, pending court approval.
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Workforce Reduction
Approved a restructuring plan eliminating approximately 51 roles, or 40% of its workforce, incurring $3.0-$4.0 million in severance costs.
Analysis · SGMO · Life Sciences
The company has filed a voluntary petition for Chapter 11 bankruptcy, a critical event that typically results in significant or total loss for existing equity holders. This move follows previous warnings about its ability to continue as a going concern and its delisting from Nasdaq. The company is immediately pursuing the sale of key assets, including its technology platforms to Eli Lilly for $50 million and its Fabry Disease program to Astellas for $25 million upfront plus potential milestones, through "stalking horse" agreements. These sales, along with $30 million in debtor-in-possession financing, are intended to fund operations during the bankruptcy process and maximize value for stakeholders, but they represent a liquidation of the company's core business.
At the time of this filing, SGMO was trading at $0.09 on OTC in the Life Sciences sector, with a market capitalization of approximately $72.2M. The 52-week trading range was $0.10 to $0.77. This filing was assessed with negative market sentiment and an importance score of 10 out of 10.