Sangamo Therapeutics Files Chapter 11, Sells Key Platforms to Lilly for $50M

What Happened

• Sangamo Therapeutics, Inc. (SGMOQ) is operating under Chapter 11 after filing a voluntary petition on June 23, 2026, and is a debtor-in-possession under Court supervision. Following a court‑approved sale process, the company completed the sale of substantially all of its technology platforms and related rights to Eli Lilly and Company on September 4, 2026, under an Asset Purchase Agreement dated June 22, 2026.

Key Details

• Sale purchaser: Eli Lilly and Company (via Merope Acquisition Sub, LLC); purchase agreement dated June 22, 2026.
• Consideration: $50 million in cash plus assumption of certain specified liabilities related to the sold assets.
• Assets sold (selected): AAV capsid engineering platform including STAC-BBB and variants, zinc finger protein platform, Modular Integrase genome editing platform, prion disease program ST-506, related IP, and rights to certain future milestone and royalty payments.
• Bankruptcy process milestones: Chapter 11 petition filed June 23, 2026; Bid Procedures Order entered July 14, 2026 (Docket No. 122); auction held August 10, 2026 (Lilly selected); Sale Order entered August 20, 2026 (Docket No. 362); sale closed September 4, 2026.
• Other disclosures: Company filed its monthly operating report for July 1–31, 2026 with the Court on September 2, 2026. Sangamo stated it is currently unable to prepare pro forma financial information reflecting the transaction.

Why It Matters

• For investors, the filing confirms Sangamo is in Chapter 11 and has sold its core technology platforms and certain future revenue rights to Lilly, which materially changes the company’s asset base and future revenue prospects tied to those programs. The $50M cash proceeds and assumed liabilities affect Sangamo’s immediate liquidity and restructuring process, but the company remains under bankruptcy supervision and has not provided pro forma financials showing the transaction’s full financial impact. Investors should monitor ongoing Chapter 11 proceedings, future operating reports, and any additional disclosures for how the company will use proceeds, address obligations, and define its remaining business going forward.