Sangamo Therapeutics (OTCQB: SGMO) has filed for voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware and entered into two separate asset sale agreements as part of a court-supervised reorganization process.

Under the agreements, Eli Lilly and Company will serve as a stalking horse bidder for Sangamo's capsid delivery platform, zinc finger platform, modular integrase platform, and the prion disease program ST-506. Astellas Pharma Inc. will serve as stalking horse bidder for Sangamo's Fabry disease program, isaralgagene civaparvovec, also known as ST-920.

Additional assets not included in either stalking horse bid — including the ST-503 chronic neuropathic pain program, the giroctocogene fitelparvovec hemophilia A program, and Sangamo's cell therapy and regulatory T cell assets — are expected to be available to other interested bidders at auction.

The asset sales are intended to proceed under Section 363 of the U.S. Bankruptcy Code, which permits the purchase of assets free and clear of existing debt and other liens. The bankruptcy case has been assigned Case No. 26-10989.

To fund ongoing operations during the proceedings, Sangamo has secured a debtor-in-possession financing commitment from Northridge ATM, LLC, subject to court approval.

"Following a comprehensive review of available alternatives, we believe this process provides a clear framework to pursue value-maximizing transactions," said Sandy Macrae, Chief Executive Officer of Sangamo Therapeutics.

Sangamo's legal counsel is Cooley LLP and Richards, Layton & Finger, PA. Its financial advisor is MERU, LLC, and its restructuring banker is Raymond James. Kurtzman Carson Consultants, LLC dba Verita Global is serving as the noticing and claims agent.