Sangamo Therapeutics filed for Chapter 11 bankruptcy on June 23, with Eli Lilly and Astellas locked in as stalking horse bidders before the petition hit the courthouse. Lilly’s bid: $50 million for a gene therapy platform suite. Astellas: up to $50 million for one of Sangamo’s most advanced clinical programs.
Lilly’s $50M buys three platforms (STAC-BBB AAV capsid delivery, zinc finger, modular integrase) plus the prion disease program ST-506. Lilly already licensed the STAC-BBB capsid last April for $18 million upfront, with a deal that could’ve reached $1.4 billion in milestones. It didn’t.
Astellas gets isaralgagene civaparvovec (ST-920), a Fabry disease gene therapy in rolling BLA submission with the FDA since December 2025 on the accelerated approval pathway. Pivotal data showed improved kidney function at 52 weeks. The program carries Orphan Drug, Fast Track, and RMAT designations.
Here’s the deal mechanic worth flagging: Lilly converts a contingent $1.4 billion milestone obligation into a clean $50 million asset purchase. Lilly gets full platform control with no future milestone liability. For a buyer already intimately familiar with the tech, that’s straightforward capital allocation.
A third asset isn’t covered by either stalking horse deal: giroctocogene fitelparvovec, a late-stage hemophilia A gene therapy with Fast Track and RMAT designations. Pfizer terminated its licensing deal on the program at year-end 2024, triggering a stock slide. Per Tuesday’s asset sale announcement, the asset heads to open court-supervised auction.
Sangamo cut 51 people, about 40% of its workforce, and retained 77 staffers to support the sale process.
Diana Kowalski