Sangamo Therapeutics launches auction of its ST‑503 chronic pain program after $163.55 million asset sales
Sangamo Therapeutics, which is in Chapter 11 bankruptcy, announced that an auction for its ST‑503 program targeting chronic neuropathic pain will be completed in the fourth quarter of 2026. The company previously closed asset sales to PTC Therapeutics and Eli Lilly that generated cash proceeds of $163.55 million. Proceeds were used to fully repay its debtor‑in‑possession financing facility. The auction is being conducted under Section 363 of the U.S. Bankruptcy Code.
Why it matters
The cash from the prior asset sales eliminated Sangamo’s DIP loan, improving its liquidity position during bankruptcy. Completion of the ST‑503 auction will determine the remaining value of the company’s assets and could affect the distribution to creditors and any future reorganization plan.
Key facts
- 1The auction process for the ST‑503 program is expected to be completed in the fourth quarter of 2026. stocktitan.net
- 2Asset sale transactions to PTC Therapeutics and Eli Lilly have closed, generating aggregate cash proceeds of $163.55 million. stocktitan.net
- 3Sangamo repaid in full all amounts outstanding under its debtor‑in‑possession financing facility provided by Future Solutions Inc. stocktitan.net
- 4Sangamo is operating under court supervision in Chapter 11 bankruptcy. stocktitan.net
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.