After more than a year of financial challenges, Sangamo Therapeutics has filed for bankruptcy and begun a process to sell its assets, including several gene therapy programs and technology platforms. As part of the proceedings, Eli Lilly and Astellas have emerged as stalking horse bidders for key portions of the company’s portfolio, including a Fabry disease gene therapy that is currently being submitted for potential U.S. regulatory review.
Sangamo announced that it has filed for voluntary Chapter 11 bankruptcy and initiated what it described as a court-supervised reorganization. The company said that substantially all of its assets are expected to be offered for sale through the process.
Under the proposed agreements, Eli Lilly has agreed to serve as the initial bidder for several of Sangamo’s technology platforms, including its capsid delivery platform, zinc finger platform and modular integrase (MINT) platform. Lilly is also seeking to acquire Sangamo’s prion disease program, ST-506, an adeno-associated virus (AAV)-based gene therapy intended as a one-time treatment for a neurodegenerative disease. The therapy was developed using Sangamo’s STAC-BBB technology, and early-stage work aimed at advancing the program into clinical testing is ongoing.
The companies already have an existing relationship. In April 2025, Lilly agreed to pay Sangamo $18 million upfront for access to the STAC-BBB AAV capsid technology to support the development of a gene therapy targeting a central nervous system disease. The agreement included the potential for additional milestone payments.
Separately, Astellas has agreed to act as the stalking horse bidder for Sangamo’s Fabry disease gene therapy, isaralgagene civaparvovec, also known as ST-920. The program is among Sangamo’s most advanced assets. In 2024, the company reported pivotal Phase 1/2 results showing improved kidney function after 52 weeks in patients with Fabry disease.
Sangamo began a rolling biologics license application submission for ST-920 in December 2025 and continued providing data to the U.S. Food and Drug Administration in March 2026. The company has been pursuing the accelerated approval pathway for the therapy.
As stalking horse bidders, Lilly and Astellas have established baseline offers for the assets covered by their agreements. These bids will serve as the starting point for a court-supervised auction process and may include certain protections for the bidders.
Several other Sangamo assets are not included in the Lilly and Astellas agreements but are expected to be marketed during the bankruptcy proceedings. These include ST-503 for chronic neuropathic pain, the hemophilia A gene therapy giroctocogene fitelparvovec, and the company’s cell therapy and regulatory T cell assets.
Giroctocogene fitelparvovec previously formed part of a licensing partnership with Pfizer. However, Pfizer ended that agreement at the close of 2024. The therapy has received Fast Track, Regenerative Medicine Advanced Therapy and Orphan Drug designations from the FDA.
The bankruptcy filing follows Sangamo’s announcement on June 8 that it was exploring strategic alternatives. According to court filings, the company also owes money to multiple creditors, including Catalent Pharma Solutions and Charles River Laboratories.
Sangamo Assets Attract Major Pharmaceutical Interest
Following the bankruptcy announcement, Sangamo has reportedly drawn interest from major pharmaceutical companies, including Eli Lilly and Astellas.
Potential Impact on Patients and Research Programs
The restructuring process raises important questions about the future of ongoing research programs and clinical development efforts. Patients participating in clinical trials often depend on continuity in study management, regulatory oversight, and funding support. Any transition of ownership will require careful coordination to ensure that promising therapies continue moving through development without unnecessary delays.
For the broader scientific community, the situation highlights the importance of preserving valuable research data and technological expertise. Many biotechnology companies invest years of work and significant capital into building platforms that can support multiple therapeutic programs. When such assets change hands, the acquiring organizations often gain access not only to intellectual property but also to specialized scientific knowledge that can accelerate innovation.
