RICHMOND, Calif., July 29 /PRNewswire-FirstCall/ -- Sangamo BioSciences, Inc. (Nasdaq: SGMO) today reported second quarter 2009 financial results and accomplishments.

For the second quarter ended June 30, 2009, Sangamo reported a consolidated net loss of $4.5 million, or $0.11 per share, compared to a consolidated net loss of $7.4 million, or $0.18 per share, for the same period in 2008. As of June 30, 2009, the company had cash, cash equivalents, marketable securities and interest receivable of $52.6 million.

Revenues for the second quarter of 2009 were $4.7 million, compared to $2.8 million for the same period in 2008. Second quarter 2009 revenues were from the Company's collaboration agreements with Dow AgroSciences (DAS) and Sigma-Aldrich Corporation, enabling technology agreements in protein production and research grants. The revenue recognized for the second quarter of 2009 consisted of $4.2 million in collaboration agreements and $0.5 million in research grants.

Research and development expenses were $6.9 million for the second quarter of 2009, compared to $8.3 million for the same period in 2008. The decrease in research and development expenses for the second quarter of 2009 was primarily due to decreased manufacturing and preclinical expenses partially offset by increased clinical trial expenses. Non-cash employee stock-based compensation included in research and development expenses totaled $0.7 million for the second quarters of both 2009 and 2008.

General and administrative expenses were $3.0 million for the second quarter of 2009, compared to $2.5 million for the same period in 2008. The increase in general and administrative expenses was primarily due to increased professional services and personnel costs including non-cash employee stock-based compensation which totaled $0.8 million in the second quarter of 2009 compared to $0.6 million in the same period in 2008.

Total operating expenses for the second quarter of 2009 were $9.9 million, compared to $10.8 million for the same period in 2008.

Net interest and other income was $0.6 million for the second quarters of both 2009 and 2008.

Six Month Results

For the six months ended June 30, 2009, the consolidated net loss was $11.3 million, or $0.28 per share, compared to a consolidated net loss of $15.4 million, or $0.38 per share, for the six-month period ended June 30, 2008. Revenues were $7.9 million for the first half of 2009, compared to $5.6 million in the same period in 2008. Total operating expenses were $20.1 million for the first half of 2009 and $22.4 million in the first half of 2008. The decrease in operating expenses for 2009 was primarily associated with decreased manufacturing, preclinical and decreased lab supply expenses partially offset by increased clinical trial expenses.

Recent Highlights

• Presentation of positive Phase 2 ZFP Therapeutic data at ADA 2009. Sangamo announced the presentation of previously unreleased positive Phase 2 clinical data from its ZFP Therapeutic(TM) program to develop SB-509 as a treatment for diabetic neuropathy (DN) at the 69th Annual Scientific Sessions of the American Diabetes Association (ADA). Data from Sangamo's SB-509-601 and SB-509-701A Phase 2 clinical trials demonstrated that SB-509 treatment resulted in statistically significant and clinically relevant improvements in subjects with moderate and severe DN as compared to placebo. The data have enabled the definition of a responder population for SB-509 for future clinical trials.
• Achievement of key milestone in cell engineering agreement with Genentech. A key research milestone was achieved in Sangamo's Research and License Agreement with Genentech, Inc., a wholly-owned member of the Roche Group. Genentech scientists demonstrated the successful knockout of two pre-selected genes in a Chinese hamster ovary (CHO) cell line using Sangamo's proprietary zinc finger DNA-binding protein nuclease (ZFN) technology.