Sangamo Therapeutics Begins ST-503 Auction After Raising $163.55M in Asset Sales
Sangamo Therapeutics, Inc. (SGMO) has started a court-supervised auction for its clinical-stage ST-503 neuropathic pain program. The sale process takes place as part of the company's Chapter 11 asset liquidation. Sangamo also finalized earlier announced asset transactions, collecting $163.55 million in total cash proceeds.
As part of those completed transactions, PTC paid $111 million in cash for ST-920, with Sangamo eligible for up to $100 million in potential milestone payments. Additionally, Lilly acquired company platform technologies and ST-506 for $50 million. Sangamo utilized the proceeds to fully pay off its debtor-in-possession financing facility, lowering its debt burden during bankruptcy.
The ST-503 auction is scheduled to wrap up in the fourth quarter of 2026. Market participants will be watching for binding bids and court approval, as a successful deal could provide additional cash recoveries for stakeholders.
Key points
- Sangamo Therapeutics, Inc. (SGMO) launched an auction for its clinical-stage ST-503 neuropathic pain program in Chapter 11.
- The company completed asset sales to PTC and Lilly, receiving $163.55 million in cash proceeds.
- PTC acquired ST-920 for $111 million cash, with up to $100 million in potential future milestone payments.
- Sangamo fully repaid its debtor-in-possession financing facility using cash from the completed transactions.
- The ST-503 auction is scheduled to complete in the fourth quarter of 2026.
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Why is Sangamo Therapeutics auctioning ST-503?
Sangamo Therapeutics launched the auction for its ST-503 neuropathic pain program as part of its court-supervised Chapter 11 asset liquidation to raise cash for stakeholders.
How much cash did Sangamo receive from recent asset sales?
Sangamo received $163.55 million in cash after closing sales to PTC and Lilly. PTC paid $111 million for ST-920, and Lilly paid $50 million for platform technologies and ST-506.
When will the ST-503 auction finish?
The auction for the ST-503 program is expected to complete in the fourth quarter of 2026, subject to binding bids and court approval.