One of the biotechnology industry’s longtime pioneers in gene therapy, Sangamo Therapeutics has filed for Chapter 11 bankruptcy protection. With this, the California-based biotech company has agreed to sell all of its assets substantially to Eli Lilly and Astellas Pharma.
The transactions are designed to preserve valuable research programs, intellectual property, and manufacturing capabilities while maximizing value for creditors and ensuring continuity for selected development programs.
Sangamo Therapeutics bankruptcy comes after years of financial pressure, despite its scientific contributions in gene editing, cell therapy, and genomic medicine. Company executives say the court-supervised process provides the best opportunity to complete the asset sales and maintain the value of the company’s technology portfolio.
Which Sangamo Therapeutics Assets Are Lilly and Astellas Buying?
The proposed Sangamo asset sale includes separate agreements with Eli Lilly and Astellas, two global pharmaceutical companies seeking to strengthen their positions in advanced genetic medicines.
Eli Lilly to Acquire the STAC-BBB Platform
Eli Lilly has agreed to purchase Sangamo’s proprietary STAC-BBB (Sangamo Therapeutic Access to the Central Nervous System) platform, a technology designed to improve the delivery of gene therapies across the blood-brain barrier. This natural protective barrier prevents many medicines from reaching the brain, making it one of the biggest challenges in treating neurological disorders.
The transaction also includes related intellectual property, research assets, and supporting technology. According to Sangamo, the deal is valued at approximately $18 million, subject to adjustments and approval by the U.S. Bankruptcy Court.
For Lilly, the acquisition complements its growing investment in neuroscience and genetic medicines, where improved drug delivery remains a critical area of research.
Astellas to Purchase the Zinc Finger Gene Regulation Platform
Astellas has entered into a separate agreement to acquire Sangamo’s Zinc Finger (ZF) epigenetic regulation platform, one of the company’s core scientific innovations. Unlike traditional gene-editing approaches that permanently alter DNA, this technology is designed to regulate gene expression without changing the underlying genetic sequence.
The proposed transaction is valued at approximately $20 million, subject to customary closing conditions and court approval.
Astellas said the acquisition supports its long-term strategy of expanding its cell and gene therapy capabilities through innovative genetic technologies.
The dual-sale structure allows different portions of Sangamo’s technology platform to continue under companies with the financial resources to support long-term development.
“These agreements represent the culmination of a comprehensive strategic review process designed to maximize the value of our assets,” Sangamo stated in its announcement.
What Happens to Sangamo’s Remaining Programs?
While the agreements involving Eli Lilly and Astellas cover some of Sangamo’s most valuable assets, several other programs are not included in the initial transactions and remain available for potential buyers through the court-supervised auction process.
As part of the Sangamo Therapeutics bankruptcy proceedings, the company said interested parties may submit offers for any remaining assets as it seeks to maximize value for stakeholders.
ST-503 for Chronic Neuropathic Pain
One of the key programs not included in either stalking horse agreement is ST-503, Sangamo’s investigational therapy for chronic neuropathic pain. Neuropathic pain is a long-lasting condition caused by nerve damage and can be difficult to treat with currently available medications.
This program could attract companies looking to expand their presence in pain management and neurological disorders.
Hemophilia A Gene Therapy
Another available asset is giroctocogene fitelparvovec, Sangamo’s gene therapy candidate for hemophilia A. The treatment previously gained attention through a partnership with Pfizer before that collaboration ended in late 2024.
The late-stage program has received several important regulatory designations from the U.S. Food and Drug Administration (FDA), including Fast Track, Regenerative Medicine Advanced Therapy (RMAT), and Orphan Drug status. These designations are intended to support the development of therapies for serious or rare diseases.
Given its advanced stage of development, industry observers may view the hemophilia program as Sangam’s most attractive asset.
Cell Therapy and Regulatory T Cell Assets
In addition to its gene therapy programs, Sangamo’s cell therapy portfolio and regulatory T cell (Treg) assets are expected to remain available to interested bidders.
Regulatory T cells play an important role in controlling immune responses and are being explored as potential treatments for autoimmune diseases and transplant-related complications.
Although these programs are earlier in development than some of Sangamo’s gene therapies, they could offer strategic value to companies pursuing next-generation cell therapies.
Outlook
Although Sangamo Therapeutics’ financial struggles ultimately led to Chapter 11 protection, the planned asset sale ensures that much of its technology is expected to continue under Eli Lilly and Astellas.
The final ownership of these remaining programs has not yet been determined, with the Chapter 11 bankruptcy process structured to encourage competitive bidding.
The company has asked the bankruptcy court to approve bidding procedures that would allow other qualified buyers to submit higher or better offers before the sales are finalized. If no superior bids emerge, Lilly and Astellas are expected to complete the acquisitions following court approval.
As the Sangamo Therapeutics bankruptcy proceedings move forward, the fate of these remaining programs will be decided.
