Sangamo Therapeutics files Chapter 11 bankruptcy, agrees to asset sales to Lilly and Astellas
Sangamo Therapeutics filed a voluntary Chapter 11 petition on June 23, 2026, in the U.S. Bankruptcy Court for the District of Delaware (Case No. 26-10989). The company has entered into stalking horse asset purchase agreements with Eli Lilly and Company and Astellas Pharma Inc. Under the Lilly agreement, Lilly will acquire Sangamo's AAV capsid engineering platform, zinc finger protein technology, Modular Integrase genome editing platform, and prion disease program (ST-506) for $50 million plus assumption of specified liabilities. Under the Astellas agreement, Astellas will acquire assets related to isaralgagene civaparvovec for Fabry Disease for $25 million at closing plus up to $25 million in milestone payments, plus assumption of specified liabilities. Both transactions are subject to court approval and higher or better bids. Sangamo secured debtor-in-possession financing of up to $30 million from Northridge ATM, LLC, with an initial draw of $10.5 million sought at interim hearing.
Key facts
- Petition Date: June 23, 2026; Case No. 26-10989; U.S. Bankruptcy Court for the District of Delaware
- Lilly acquires AAV capsid engineering platform (including STAC-BBB), zinc finger protein technology, Modular Integrase platform, and ST-506 prion disease program for $50 million plus assumption of Lilly Liabilities
- Astellas acquires isaralgagene civaparvovec (Fabry Disease asset) for $25 million at closing plus up to $25 million in milestone payments plus assumption of Astellas Liabilities
- DIP Facility: up to $30 million from Northridge ATM, LLC; senior secured, first priority lien on substantially all assets; DIP Termination Date earliest of: December 30, 2026; Chapter 11 plan effective date; consummation of Section 363 sale of all or substantially all assets; acceleration following event of default; dismissal/conversion/trustee appointment; or 35 days after Petition Date unless final DIP order entered
- Workforce reduction: approximately 51 roles (40% of workforce) eliminated on June 22, 2026; approximately 77 employees retained
- Restructuring charges: approximately $3.0 million to $4.0 million incremental expenses for severance and employee health benefits; approximately $0.5 million in cash payments made for accrued paid time off
- Both stalking horse transactions remain subject to higher or otherwise better bids and court approval under Section 363 of the Bankruptcy Code
- Company objectives: maximize value for stakeholders through sale of all or substantially all assets to highest bidder(s)
Why it matters
Sangamo's Chapter 11 filing and pre-negotiated stalking horse sales to Lilly and Astellas establish a restructuring path for the company's gene therapy and genome editing assets; the transactions are subject to court approval and competing bids, and the DIP financing provides operating capital through the Chapter 11 process, though DIP availability is constrained by specific termination triggers and milestone requirements.
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Derived from 8-K filed 2026-06-23. Not investment advice. View the source filing on SEC.gov →