Sangamo Biosciences Inc. (SGMO)

BUSINESS SUMMARY
Sangamo Biosciences, Inc. engages in the research, development, and commercialization of DNA binding proteins for the therapeutic regulation and modification of disease-related genes. Its technology platform is based on the engineering of a class of proteins known as zinc finger DNA-binding proteins (ZFPs). The applications of the company�s technology include pharmaceutical protein production, development of human therapeutics, and plant agriculture. It has also initiated preclinical animal studies of ZFP therapeutics in congestive heart failure, nerve regeneration, and neuropathic pain; and has research-stage programs in human immunodeficiency virus, X-linked severe combined immunodeficiency, hemophilia and hemoglobinopathies, and cancer and cancer immunotherapy. The company has strategic partnership with Edwards Lifesciences Corporation for therapeutic product development. Sangamo Biosciences was founded in 1995 and is based in Richmond, California.

BUSINESS STRATEGY
Partnerships are very important to us.
We are taking our first therapeutic programs forward through early clinical trials but aim to develop these programs further with partners who provide funding or access to complementary technologies such as delivery methods.

Collaborations in Enabling Technologies
Our Enabling Technology Agreements allow us to leverage our technology and provide near to mid term revenue.

Opportunities:

* ZFP TF- and ZFN-Engineered Cell Lines for the Manufacturing of Protein Pharmaceuticals.
We have an agreement with Medarex who is providing research funding, milestone payments and potentially royalties on sales of antibodies and protein pharmaceuticals manufactured using this technology. We have an agreement to provide ZFN-engineered cell lines to Pfizer Inc who provide research funding. We also have agreements with several other companies including Novo Nordisk, Novartis, Amgen and Kirin Brewery Company who are evaluating our ZFP TF and ZFN technology.
* ZFP TFs for the Development of Therapeutics
Sangamo has also provided companies such as LifeScan, a Johnson & Johnson company, with ZFP TFs to aid in the development of new therapeutic treatments for diabetes in the emerging field of regenerative medicine.

Management Team

Edward Lanphier, the founder of Sangamo BioSciences, Inc., has served as President, Chief Executive Officer and as a member of the Board of Directors since Sangamo's inception. Mr. Lanphier has approximately twenty years of experience in the pharmaceutical and biotechnology industry. From June 1992 to May 1997, he held various positions at Somatix Therapy Corporation, a gene therapy company, including Executive Vice President, Commercial Development and Chief Financial Officer. Prior to Somatix, Mr. Lanphier was President and Chief Executive Officer of BioGrowth, Inc., a biotechnology company that merged with Celtrix Laboratories to form Celtrix Pharmaceuticals, Inc. in 1991. From 1986 to 1987, Mr. Lanphier served as Vice President of Corporate Development at Biotherapeutics, Inc. From 1984 to 1986 he served as Vice President of Corporate Development at Synergen Inc. Prior to Synergen, he was employed by Eli Lilly and Company, a pharmaceutical company, in the strategic business planning biotechnology group. Mr. Lanphier is a member of the Biotechnology Industry Organization (BIO) Emerging Companies Section and serves on the board of directors of the Biotechnology Institute. Mr. Lanphier holds a B.A. in biochemistry from Knox College .

Dale Ando, M.D. has served as Vice President, Therapeutic Development and Chief Medical Officer since August 2004. Dr. Ando has held senior positions in therapeutic product development in several biotechnology companies most recently as Vice President, Clinical Research at Cell Genesys, Inc. While at Cell Genesys, Dr. Ando directed the development of Phase I-III GVAX programs, oncolytic virus programs and Phase I/II trials of chimaeric T-cell receptor products in HIV and cancer. Prior to joining Cell Genesys in 1997, Dr. Ando spent six years at Chiron Corporation as director of clinical gene therapy and three years at Cetus Corporation. From 1997 to 2001 Dr. Ando served as a member of the Recombinant DNA Advisory Committee (RAC) and the Adenoviral Safety Committee for the National Institutes of Health (NIH). Dr. Ando began his career as a faculty member at UCLA Medical School in the Division of Rheumatology. He received his M.D. and Internal Medicine training at the University of Michigan and a B.S. in Chemistry from Stanford University. Dr. Ando is board certified in internal medicine and is a subspecialist in Rheumatology.

David G. Ichikawa has served as Senior Vice President, Business Development since December 2004. Prior to joining Sangamo, Mr. Ichikawa was most recently Chief Business Officer for Sagres Discovery, where he was responsible for corporate strategy and business development activities. While at Sagres he negotiated a major collaboration with Boehringer Ingelheim, the strategic acquisition of MemRx Corporation and played a critical role in the acquisition of Sagres by Chiron Corporation. Prior to Sagres Discovery, David held several positions with Chiron Corporation including Vice President, R&D Business Development and Finance. Mr. Ichikawa earned his M.B.A. degree from the University of California at Berkeley and a B.S. degree from the University of California at Davis.

Philip D. Gregory, D. Phil. has served as Vice President, Research since October, 2005. He joined Sangamo in December 2000 as a Scientist, became a Team Leader in October, 2001and Senior Director, Research in July 2003. Prior to joining the company, Dr. Gregory was at the University of Munich, Germany, where he studied the role of chromatin structure in gene regulation and published extensively in this field. Dr. Gregory earned a D. Phil. In Biochemistry from the University of Oxford and holds a B.Sc. in microbiology from the University of Sheffield.

Sean Brennan, Ph.D. has served as Senior Director, Intellectual Property since January 2004. He joined Sangamo in February 2000 as Associate Director, Intellectual Property. Prior to joining Sangamo, Dr. Brennan worked for 6 years with Morrison and Foerster of Palo Alto as a Legal Analyst and as a Patent Agent. From 1983-1994, Dr. Brennan held several positions in industry and academic science including 2 years as a Senior Research Scientist and Team leader at BioGenex Laboratories and Associate and Assistant Professorships at the University of Southern California and the University of Connecticut School of Medicine. Dr. Brennan earned a Ph.D. in Biology from the University of California, San Diego and holds a B.A. in Biology from the University of Delaware.

Ed Rebar, Ph.D. has served as Senior Director, Technology since November 2003. He joined Sangamo in August 1998 as a Scientist and became a Team Leader in October 2001. Prior to joining Sangamo, he was a post-doctoral fellow at University of California, Berkeley. Dr. Rebar earned a Ph.D. from the Massachusetts Institute of Technology, where he developed phage display methods for engineering zinc fingers with novel DNA-binding specificities. Dr. Rebar has authored numerous publications and patents relating to the design and application of zinc finger proteins. He holds a B.S. in Biochemistry from Rutgers University

Eric Rhodes has served as Senior Director of Commercial Development since July 1998. Mr. Rhodes has primary responsibility for the management of the company’s Enabling Technology businesses including small molecule discovery, protein production and functional genomics. Before joining Sangamo, he served in a variety of scientific and business development roles at Incyte Pharmaceuticals, a genomic database and data management software company. While there, Mr. Rhodes served on a team responsible for the expansion of Incyte’s high throughput sequencing capabilities. He subsequently worked in the business development group where his primary focus was the evaluation and acquisition of new technologies. Previously, Mr.Rhodes directed the molecular biology group at Anergen, Inc., a biotechnology company focused on developing new drugs to treat autoimmune diseases. He also worked for BioGrowth, Inc. and Triton BioSciences. Mr. Rhodes holds a B.S. in microbiology and immunology from the University of California, Berkeley.

Greg Zante, CPA, has served as Vice President, Finance and Administration since September 2006. He joined Sangamo as Senior Director, Finance and Administration in August 2003. Prior to joining Sangamo, Mr. Zante was Director, Finance and Administration of Calyx Therapeutics, Inc. a privately held pharmaceutical discovery and development company, from December 2001. From October 1993 until December 2001, Mr. Zante held senior financial managerial positions in several companies including Matrix Pharmaceuticals, Inc. He was employed by Ernst and Young, LLP as a Senior Staff Accountant from October 1993 until November 1995. Mr. Zante holds a B.A. in business-economics and managerial accounting from UCLA and is a Certified Public Accountant in the state of California.


Board of Directors

Edward Lanphier, the founder of Sangamo BioSciences, Inc., has served as President, Chief Executive Officer and as a member of the Board of Directors since Sangamo's inception. Mr. Lanphier has approximately twenty years of experience in the pharmaceutical and biotechnology industry. From June 1992 to May 1997, he held various positions at Somatix Therapy Corporation, a gene therapy company, including Executive Vice President, Commercial Development and Chief Financial Officer. Prior to Somatix, Mr. Lanphier was President and Chief Executive Officer of BioGrowth, Inc., a biotechnology company that merged with Celtrix Laboratories to form Celtrix Pharmaceuticals, Inc. in 1991. From 1986 to 1987, Mr. Lanphier served as Vice President of Corporate Development at Biotherapeutics, Inc. From 1984 to 1986 he served as Vice President of Corporate Development at Synergen Inc. Prior to Synergen, he was employed by Eli Lilly and Company, a pharmaceutical company, in the strategic business planning biotechnology group. Mr. Lanphier is a member of the Biotechnology Industry Organization (BIO) Emerging Companies Section and serves on the board of directors of the Biotechnology Institute. Mr. Lanphier holds a B.A. in biochemistry from Knox College .

William G. Gerber, M.D. has served as a member of our Board of Directors since June 1997. Dr. Gerber is currently a partner at Bay City Capital, a life sciences investment fund management firm. From September 1999 until its merger into Nanogen, Inc. in December 2004, Dr. Gerber was President, Chief Executive Officer and a Director of Epoch Biosciences, Inc., a biomedical company. From April 1998 to July 1999, he was President of diaDexus LLC, a pharmacogenomics company. Previous to his appointment at diaDexus, he was Chief Operating Officer of Onyx Pharmaceuticals. Before joining Onyx in 1995, Dr. Gerber was with Chiron Corporation, a biopharmaceutical, vaccine and blood testing company, where he was President of the Chiron Diagnostics business unit after Chiron's merger with Cetus Corporation in December 1991. He joined Cetus in 1987 as Senior Director of Corporate Ventures and was named Vice President and General Manager of the PCR (Polymerase Chain Reaction) Division in November 1988.11. Dr. Gerber is Chairman of the Board of Pathway Diagnostics, a private company, and on the board of directors of Nanogen Inc., Radiant Medical Inc. and Galileo Pharmaceuticals Inc. Dr. Gerber earned his B.S. and M.D. degrees from the University of California, San Francisco School of Medicine .

John W. Larson has served as a member of our Board of Directors since January 1996. Mr. Larson is currently a partner at the law firm of Morgan, Lewis & Bockius LLP. Mr. Larson served as partner at the law firm of Brobeck, Phleger & Harrison LLP (Brobeck) from 1969 until retiring in January 2003, except for the period from July 1971 to September 1973 when he was in government service as Assistant Secretary of the United States Department of the Interior and Counselor to George P. Shultz, Chairman of the Cost of Living Council. From 1988 until March 1996, Mr. Larson was Chief Executive Officer of Brobeck. Mr. Larson serves on the boards of several privately held companies. Mr. Larson holds an L.L.B. and a B.A., with distinction, in economics, from Stanford University.

Margaret A. Liu, M.D. has served as a member of our Board of Directors since March 2005. Dr. Liu is currently a Visiting Professor at the Karolinska Institutet in Stockholm and until June 2006 was Vice-Chairman of the Board of Transgène in Strasbourg. From 2000 to 2002, Dr. Liu was the Senior Advisor in Vaccinology for the Bill and Melinda Gates Foundation. From 1997 to 1998 she was Vice President of Vaccines Research and from 1998-2000 was Vice President of Vaccines Research and Gene Therapy at Chiron Corporation. She joined Merck Research Laboratories in 1988 and in 1994 became Senior Director in the Department of Virus and Cell Biology. Dr. Liu serves on the editorial or advisory boards of various scientific journals and has been elected a member of the American Society for Clinical Investigation and a Fellow of the Molecular Medicine Society. In 2002, Discover magazine named her one of “The 50 Most Important Women Scientists”. Dr. Liu earned her B.A. in Chemistry, Summa Cum Laude, from Colorado College and an M.D. from Harvard Medical School. In 2002, she was awarded an honorary Doctorate of Science from Colorado College and has received numerous honorary lectureships.

Steven J. Mento, Ph.D. has served as a member of our Board of Directors since May, 2005. He is President and Chief Executive Officer of Conatus Pharmaceuticals Inc. From 1997 to 2005 he was President and CEO of Idun Pharmaceuticals and prior to that, from 1982 to 1992, Dr. Mento held various positions at American Cyanamid Company. His last position was Director of Viral Vaccine Research and Development at Lederle-Praxis Biologicals, a business unit of American Cyanamid Company. In January of 1992, he joined Viagene, Inc. as Vice President of Research and Development. Dr. Mento was responsible for directing the company’s transition from basic research through initiation of the first company sponsored Phase I and Phase II clinical trials in the emerging field of gene therapy. In October of 1995, Chiron Corporation acquired Viagene, Inc., and renamed the company Chiron Viagene, Inc. Dr. Mento served as President of Chiron Viagene, Inc. and Vice President of Chiron Corporation until August of 1997. As President, Dr. Mento had overall responsibility for gene therapy research, product development, QA/ QC, GMP manufacturing as well as general administration functions at Chiron Viagene. Dr. Mento holds Bachelor of Arts, Master of Science, and Ph.D. degrees in microbiology from Rutgers University. He did his post-doctoral fellowship in somatic cell genetics at the University of Toronto. Dr. Mento currently serves on the Boards of BIOCOM (Co-Chair of Workforce Development Committee), BIO (Co-Chair of Capital Formation Committee), BIO ECS Governing Body, Grannus BioSciences, UCSD-Division of Biological Sciences Board of Advisors, SDSU BioScience Center Scientific Advisory Board, and UCSD Bannister Family House.

H. Ward Wolff has served as a member of our Board of Directors since June 2006. Mr. Wolff is Senior Vice President, Finance and Chief Financial Officer of Nuvelo, Inc. and most recently served as Chief Financial Officer and Senior Vice President, Finance, of Abgenix, Inc. from September 2004 until April 2006 when the merger of Abgenix and Amgen Inc. was consummated. Prior to joining Abgenix, from July 2002 to December 2003, Mr. Wolff served as Chief Financial Officer of QuantumShift, from 1998 to January 2002, he was Senior Vice President and Chief Financial Officer of DoubleTwist, Inc. and from 1992 to 1998, he was Senior Vice President of Finance and Administration and Chief Financial Officer of Premenos Technology Corporation. From 1985 to 1992, Mr. Wolff was an Executive Director of Russell Reynolds Associates, Inc. From 1974 to 1985, Mr. Wolff held numerous positions with Price Waterhouse, as a certified public accountant, including Senior Audit Manager. Mr. Wolff received a B.A. degree in Economics from the University of California at Berkeley and an M.B.A. degree from Harvard Business School.

Michael C. Wood has served as a member of our Board of Directors since our inception. Mr. Wood was founder, CEO and President of LeapFrog Enterprises, Inc., an educational company from January 1995 through March 2004. Mr. Wood has 15 years of experience in the corporate legal representation of high technology firms and venture capital partnerships. From 1991 through 1994, he was a partner of the emerging technology companies group at Cooley Godward LLP. From 1979 to 1991, Mr. Wood practiced corporate law in the high technology practice of Crosby Heafy Roach & May. Mr. Wood received a J.D. from the Hastings College of Law, an M.B.A. from the University of California, Berkeley and his B.A. in political science from Stanford University
VALUATION MEASURES
Market Cap (intraday): 298.32M
Enterprise Value (3-Feb-07)3: 201.06M
Trailing P/E (ttm, intraday): N/A
Forward P/E (fye 31-Dec-07) 1: N/A
PEG Ratio (5 yr expected): N/A
Price/Sales (ttm): 38.78
Price/Book (mrq): 5.40
Enterprise Value/Revenue (ttm)3: 28.36
Enterprise Value/EBITDA (ttm)3: -16.941
FINANCIAL HIGHLIGHTS
Fiscal Year
Fiscal Year Ends: 31-Dec
Most Recent Quarter (mrq): 30-Sep-06
Profitability
Profit Margin (ttm): -163.76%
Operating Margin (ttm): -195.27%
Management Effectiveness
Return on Assets (ttm): -18.16%
Return on Equity (ttm): -31.64%
Income Statement
Revenue (ttm): 7.09M
Revenue Per Share (ttm): 0.23
Qtrly Revenue Growth (yoy): 331.80%
Gross Profit (ttm): 2.48M
EBITDA (ttm): -11.87M
Net Income Avl to Common (ttm): -11.61M
Diluted EPS (ttm): -0.38
Qtrly Earnings Growth (yoy): N/A
Balance Sheet
Total Cash (mrq): 56.88M
Total Cash Per Share (mrq): 1.676
Total Debt (mrq): N/A
Total Debt/Equity (mrq): N/A
Current Ratio (mrq): 11.876
Book Value Per Share (mrq): 1.501
Cash Flow Statement
Operating Cash Flow (ttm): -5.30M
Levered Free Cash Flow (ttm): -5.28M