Sangamo Files Chapter 11, Cuts 51 Jobs as Lilly and Astellas Bid for Key Assets

3 articles · Updated · BioSpace · Jun 23

Sangamo filed for voluntary Chapter 11 and will lay off 51 employees—about 40% of staff—while keeping 77 to support programs tied to bids from Eli Lilly and Astellas.
The bankruptcy launches a court-supervised auction after more than a year of financial strain, with Sangamo saying the process offers a framework to maximize value from its pipeline and platforms.
Lilly is the stalking horse bidder for Sangamo’s capsid delivery, zinc finger and modular integrase platforms, plus the prion disease program ST-506; a prior 2025 deal had included $18 million upfront and up to $1.4 billion in milestones.
Astellas is bidding for Fabry disease gene therapy ST-920, which entered a rolling FDA biologics application in December 2025 after Phase 1/2 data showed improved kidney function at 52 weeks.
Other assets, including hemophilia A therapy giroctocogene fitelparvovec, are also expected to be sold as Sangamo restructures under creditor pressure from companies including Catalent and Charles River.