Stellar Biotechnologies Reports Third Quarter Financial Results

On August 8, 2018 Stellar Biotechnologies, Inc. (Nasdaq: SBOT), a leading manufacturer of a key protein utilized in multiple immunotherapy development pipelines targeting Alzheimer’s, lupus and cancer, among other diseases, reported financial results for the three and nine months ended June 30, 2018 and provided an update on its business (Press release, Stellar Biotechnologies, AUG 8, 2018, View Source [SID1234528534]).

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During the third fiscal quarter, Stellar reported positive research results from viral clearance and glycosylation studies associated with its manufacturing scale-up initiatives. The company also completed equity financings and warrant exercises resulting in net cash proceeds of approximately $8.8 million.

Stellar’s President and Chief Executive Officer Frank R. Oakes said, "We are delivering on a number of initiatives. We achieved positive research results and a quality assurance milestone, advanced key operational programs designed to support our customers, and significantly strengthened our financial position. Additionally, with third-party clinical results now available, Stellar has the opportunity to support an anticipated pivotal Phase 3 clinical study of a KLH-conjugated vaccine candidate."

Stellar Chief Financial Officer Kathi Niffenegger said, "With a stronger balance sheet, which includes $11.2 million in working capital and no debt, we are well positioned to complete planned upgrades to our core aquaculture infrastructure, continue our optimization work, and advance our initiatives to develop additional market opportunities for our technology and products."

Financial Results

Three months ended June 30, 2018

Total revenues increased by $0.05 million to $0.07 million for the three months ended June 30, 2018 compared to $0.02 million for the same period last year due to an increase in product sales.

Total expenses decreased by $0.08 million to $1.23 million for the three months ended June 30, 2018 compared to $1.31 million for the same period last year:

Cost of sales and contract services decreased by $0.03 million to $0.05 million for the three months ended June 30, 2018 compared to $0.08 million for the same period last year. The decrease was primarily due to reduced expenses related to sales of KLH that was produced as a byproduct of the company’s research and development activities.
Research and development expenses decreased by $0.07 million to $0.47 million for the three months ended June 30, 2018 compared to $0.54 million for the same period last year. The decrease was primarily due to a reduction in KLH product inventory utilized for internal research and development activities.
General and administrative expenses increased by $0.02 million to $0.65 million for the three months ended June 30, 2018 compared to $0.64 million for the same period last year primarily due an increased noncash share-based compensation expenses, which were partially offset by reduced professional fees and travel expenses.
For the third quarter of fiscal year 2018, Stellar reported a net loss of $1.16 million, or $0.38 per basic share, compared to a net loss of $ 1.22 million, or $ 0.84 per basic share, for the third quarter of the prior year.

Nine months ended June 30, 2018

Total revenues decreased by $0.07 million to $0.16 million for the nine months ended June 30, 2018 compared to $0.23 million for the same period last year due to a decrease in product sales.

Total expenses decreased by $0.03 million to $4.05 million for the nine months ended June 30, 2018 compared to $4.08 million for the same period last year:

Cost of sales and contract services decreased by $0.12 million to $0.11 million for the nine months ended June 30, 2018 compared to $0.23 million for the same period last year primarily due to decreased product sales volume as well as reduced expenses related to sales of KLH that was produced as a byproduct of the company’s research and development activities.
Research and development expenses increased by $0.26 million to $1.59 million for the nine months ended June 30, 2018 compared to $1.33 million for the same period last year. The increase was primarily due to an increase in research and development activities intended to increase the scalability and throughput capacity of existing manufacturing systems, including engineering lots of KLH produced under the company’s optimization initiative.
General and administrative expenses decreased by $0.21 million to $2.10 million for the nine months ended June 30, 2018 compared to $2.31 million for the same period last year primarily due to reduced professional fees and travel expenses.
For the nine months ended June 30, 2018, Stellar reported a net loss of $3.91 million, or $1.93 per basic share, compared to a net loss of $3.81 million, or $2.63 per basic share, for the nine months ended June 30, 2017.

Working Capital

At June 30, 2018, the company had working capital of $11.2 million. Cash, cash equivalents and short-term investments totaled $11.3 million.

Stellar will file its Form 10-Q for the quarter ended June 30, 2018 with the Securities and Exchange Commission on or about August 8, 2018. To view the company’s filings with the Canadian Securities Administrators (CSA), visit the CSA’s SEDAR website.

Agilent Announces Update on PD-L1 CE-IVD in Urothelial Carcinoma

On August 8, 2018 Agilent Technologies Inc. (NYSE: A) reported that its PD-L1 IHC 22C3 pharmDx assay is now labeled for an updated use in urothelial carcinoma in Europe (Press release, Agilent, AUG 8, 2018, View Source [SID1234528550]).

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"We are pleased that PD-L1 IHC 22C3 pharmDx will help physicians identify urothelial carcinoma patients for whom KEYTRUDA may be an appropriate first-line treatment option. Being able to support the use of immuno-oncology therapeutics by bringing their associated diagnostics to market is truly encouraging"

Physicians in Europe can now use the assay as an aid to identify urothelial carcinoma patients who are ineligible for cisplatin and may respond to KEYTRUDA (pembrolizumab) as a first-line treatment option. KEYTRUDA is a targeted anti-PD-1 immunotherapy manufactured by Merck (known as MSD outside the United States and Canada). It is a humanized monoclonal antibody that may increase the ability of the body’s immune system to help detect and fight tumor cells.

"We are pleased that PD-L1 IHC 22C3 pharmDx will help physicians identify urothelial carcinoma patients for whom KEYTRUDA may be an appropriate first-line treatment option. Being able to support the use of immuno-oncology therapeutics by bringing their associated diagnostics to market is truly encouraging," said Sam Raha, president of Agilent’s Diagnostics and Genomics Group.

Agilent is a worldwide leader in partnering with pharmaceutical companies to develop immunohistochemical-based diagnostics for cancer therapy. Agilent developed PD-L1 IHC 22C3 pharmDx in partnership with Merck. PD-L1 expression in urothelial carcinoma tissues is interpreted using Combined Positive Score (CPS). PD-L1 IHC 22C3 pharmDx also helps physicians identify non-small cell lung cancer (NSCLC) patients for treatment with KEYTRUDA. PD-L1 expression in NSCLC tissues is interpreted using Tumor Proportion Score (TPS).

CBT Pharmaceuticals Receives First Australian Ethics Approval to Initiate APOLLO-1 Phase 1/2 Clinical Trial for Hepatocellular and Renal Cell Carcinoma

On August 8, 2018 CBT Pharmaceuticals (CBT), a U.S. and China-based innovative biopharmaceutical company committed to becoming a leader in the discovery and development of oncology combination therapies, reported the receipt of ethics approval from the Bellberry Human Research Ethics Committee (HREC) in Australia for its planned APOLLO-1 clinical trial (Press release, CBT Pharmaceuticals, AUG 8, 2018, View Source [SID1234528576]). HREC is an independent ethics review board compliant with strict national Health and Medical Research Council (NHMRC) guidelines for clinical trials.

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"Ethics approval is an essential element of the process to initiate a clinical trial in Australia as we prepare to launch our first combination study with our proprietary c-Met inhibitor and anti PD-1 immunotherapies," stated Sanjeev Redkar, PhD, President and Chief Executive Officer. "We are thrilled to partner with the world-leading oncologists and hepatologists in Australia who are highly experienced clinical trial investigators and share our commitment to the development of new combination approaches to treat cancer patients."

APOLLO-1 is a Phase 1/2 open label, multi-center dose escalation and expansion study of combination immunotherapy in locally advanced or metastatic disease: CBT-101 (c-Met inhibitor) with CBT-501 (anti-PD-1) in hepatocellular carcinoma (HCC), or CBT-101 and nivolumab in renal cell carcinoma (RCC). CBT-101 is CBT’s c-Met inhibitor targeting the epithelial to mesenchymal transition (EMT) pathway, and CBT-501 is CBT’s IgG4 humanized monoclonal antibody against the Programmable Death-1 (PD-1) membrane receptor on immune cells. Nivolumab (OPDIVO; Bristol-Myers Squibb Company) is approved for advanced kidney cancer. CBT-101 will be administered concomitantly with the PD-1 cancer immunotherapy.

"Our c-Met inhibitor may improve responses to cancer immunotherapy in settings beyond c-MET-dependent tumors by eliminating resistance in the tumor microenvironment, reactivating T-cells to kill the tumor, and sustaining that T-cell response. We look forward to initiating the trial in the next few weeks," added Tillman Pearce, MD, Chief Medical Officer.

About CBT-501 (genolimzumab Injection)

CBT-501 is a novel IgG4 humanized monoclonal antibody against the Programmable Death-1 (PD-1) membrane receptor on immune cells. It has a comparable efficacy profile in in vitro and in vivo studies to the marketed anti-PD-1 antibodies, nivolumab and pembrolizumab, and has a favorable profile with very low antibody-dependent cell-mediated cytotoxicity (ADCC) and complement dependent cytotoxicity (CDC) activity. In China, CBT-501 is referred to as GB226 where it is being developed by CBT partner Genor BioPharma Co. Ltd. Visit clinicaltrials.gov for additional information on the ongoing clinical trials: NCT03053466, NCT03374007, and NCT03502629.

CBT-101 Oral Capsule

CBT-101 is a novel, small molecule drug that targets the epithelial to mesenchymal transition (EMT) pathway that is dysregulated in several tumors. It is a specific inhibitor of the c-Met receptor. CBT-101 has demonstrated tumor inhibitory effect in a variety of human primary c-Met amplified gastric, hepatic, pancreatic and lung cancer xenograft animal models with c-Met fusions, mutations or amplifications. In China, CBT-101 is referred to as PLB1001 where it is being developed by CBT partner Beijing Pearl Biotechnology Co. Ltd. Visit clinicaltrials.gov for additional information on the ongoing clinical trials: NCT03175224, NCT02896231, and NCT02978261.

Janssen Submits U.S. & EU Regulatory Applications Seeking Approval of DARZALEX® (daratumumab) Split Dosing Regimen

On August 8, 2018 The Janssen Pharmaceutical Companies of Johnson & Johnson reported the submission of a supplemental Biologics License Application (sBLA) to the U.S. Food and Drug Administration (FDA) and a Type II Variation to the European Medicines Agency (EMA) seeking approval of a split dosing regimen for DARZALEX (daratumumab) (Press release, Johnson & Johnson, AUG 8, 2018, View Source [SID1234528659]). The applications seek to update the Prescribing Information and Summary of Product Characteristics to provide health care professionals with the option to split the first infusion of DARZALEX over two consecutive days. The submissions are supported by data from the Phase 1b MMY1001 clinical trial, which demonstrated DARZALEX pharmacokinetics (PK) concentrations were comparable regardless of whether the first dose was administered as a split infusion or single first infusion in patients with multiple myeloma.

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1 The safety profile of DARZALEX was comparable when administered initially as a split or single dose.1
"We are committed to exploring options that may improve the administration profile of DARZALEX and the overall
treatment experience for patients and physicians," said Craig Tendler, MD, Vice President, Clinical Development
and Global Medical Affairs, Janssen Research & Development, LLC. "We look forward to reviewing the data in
support of these applications with regulators and hope to make a DARZALEX split-dose option available to
patients and health care professionals to provide additional flexibility in administration of the initial infusion."

The regulatory submission is based on data from the global, multi-arm Phase 1b MMY1001 study in multiple
myeloma, which evaluated DARZALEX in combination with various treatment regimens.
1 Splitting the first dose of
DARZALEX effectively reduced the duration of the first infusion and resulted in a similar rate and pattern of
infusion reactions.
1 Data from MMY1001 demonstrated that DARZALEX concentrations were comparable after
administration of the first 16 mg/kg dose regardless of whether it was administered as a split infusion or single first
infusion in all approved indications.
1 No new safety events were observed with split dosing.
1
In the U.S., DARZALEX first received FDA approval in November 2015 as a monotherapy for patients with
multiple myeloma who have received at least three prior lines of therapy, including a proteasome inhibitor (PI) and
an immunomodulatory agent, or who are double refractory to a PI and an immunomodulatory agent.2 DARZALEX
received additional approvals in November 2016 in combination with lenalidomide and dexamethasone, or
bortezomib and dexamethasone, for the treatment of patients with multiple myeloma who have received at least
one prior therapy.3
In June 2017, DARZALEX received approval in combination with pomalidomide and
dexamethasone for the treatment of patients with multiple myeloma who have received at least two prior therapies,
including lenalidomide and a PI.4 Most recently, in May 2018, DARZALEX received approval in combination with
bortezomib, melphalan and prednisone for the treatment of patients with newly diagnosed multiple myeloma who
are ineligible for autologous stem cell transplant (ASCT), making it the first monoclonal antibody approved for
newly diagnosed patients with this disease.5
In the European Union (EU), DARZALEX first received European Commission approval in May 2016 as a
monotherapy for the treatment of adult patients with relapsed and refractory multiple myeloma, whose prior therapy
included a PI and an immunomodulatory agent, and who have demonstrated disease progression on the last
therapy.
6 DARZALEX received an additional approval in April 2017 for use in combination with lenalidomide and
dexamethasone, or bortezomib and dexamethasone, for the treatment of adult patients with multiple myeloma who
have received at least one prior therapy.
6 Finally, in July 2018, DARZALEX received a positive opinion from the
Committee for Medicinal Products for Human Use (CHMP) recommending broadening the existing marketing
authorization for use in combination with bortezomib, melphalan and prednisone for the treatment of adult patients
with newly diagnosed multiple myeloma who are ineligible for autologous stem cell transplant (ASCT).
In August 2012, Janssen Biotech, Inc. and Genmab A/S entered into a global license and development agreement,
which granted Janssen an exclusive license to develop, manufacture and commercialize DARZALEX.
7 For the full
U.S. Prescribing Information, please visit www.DARZALEX.com. For the full EU Summary of Product
Characteristics, please click here.
About DARZALEX (daratumumab) Injection, for Intravenous Infusion
DARZALEX (daratumumab) injection for intravenous use is the first CD38-directed antibody approved anywhere
in the world.5 CD38 is a surface protein that is highly expressed across multiple myeloma cells, regardless of
3
disease stage.8 DARZALEX is believed to induce tumor cell death through multiple immune-mediated
mechanisms of action, including complement-dependent cytotoxicity (CDC), antibody-dependent cell-mediated
cytotoxicity (ADCC) and antibody-dependent cellular phagocytosis (ADCP), as well as through apoptosis, in which
a series of molecular steps in a cell lead to its death.5 Subsets of myeloid derived suppressor cells (MDSCs),
CD38+ regulatory T cells (Tregs) and CD38+ B cells (Bregs) were decreased by DARZALEX.
5 DARZALEX is
being evaluated in a comprehensive clinical development program across a range of treatment settings in multiple
myeloma, such as in frontline and relapsed settings.
9,10,11,12,13,14,15,16 Additional studies are ongoing or planned to
assess its potential in other malignant and pre-malignant hematologic diseases in which CD38 is expressed, such
as smoldering myeloma, as well as in solid tumors.
17,18,19 DARZALEX is the first and only CD38-directed antibody
to receive regulatory approval to treat multiple myeloma.5
About Multiple Myeloma
Multiple myeloma is an incurable blood cancer that occurs when malignant plasma cells grow uncontrollably in the
bone marrow.20,21 Refractory cancer occurs when a patient’s disease is resistant to treatment or in the case of
multiple myeloma, patients progress within 60 days of their last therapy.22,23 Relapsed cancer means the disease
has returned after a period of initial, partial or complete remission.24
In 2018, it is estimated that 30,700 people will
be diagnosed, and 12,770 will die from the disease in the United States.25 Additionally, there were 40,570 new
cases of multiple myeloma in Europe in 2015.26 The most recent five-year survival data for 2000-2007 show that
across Europe, up to half of newly diagnosed patients do not reach five-year survival.27 While some patients with
multiple myeloma have no symptoms at all, most patients are diagnosed due to symptoms, which can include bone
fracture or pain, low red blood counts, fatigue, calcium elevation, kidney problems or infections.28
IMPORTANT SAFETY INFORMATION5
CONTRAINDICATIONS
DARZALEX is contraindicated in patients with a history of severe hypersensitivity (eg, anaphylactic reactions) to
daratumumab or any of the components of the formulation.
WARNINGS AND PRECAUTIONS
Infusion Reactions – DARZALEX can cause severe and/or serious infusion reactions, including
anaphylactic reactions. In clinical trials, approximately half of all patients experienced an infusion reaction.
Most infusion reactions occurred during the first infusion and were grade 1-2. Infusion reactions can also occur
with subsequent infusions. Nearly all reactions occurred during infusion or within 4 hours of completing an
infusion. Prior to the introduction of post-infusion medication in clinical trials, infusion reactions occurred up
to 48 hours after infusion. Severe reactions have occurred, including bronchospasm, hypoxia, dyspnea,
hypertension, laryngeal edema and pulmonary edema. Signs and symptoms may include respiratory
symptoms, such as nasal congestion, cough, throat irritation, as well as chills, vomiting and nausea. Less
4
common symptoms were wheezing, allergic rhinitis, pyrexia, chest discomfort, pruritus, and hypotension.
Pre-medicate patients with antihistamines, antipyretics, and corticosteroids. Frequently monitor patients
during the entire infusion. Interrupt infusion for reactions of any severity and institute medical management
as needed. Permanently discontinue therapy if an anaphylactic reaction or life-threatening (Grade 4) reaction
occurs and institute appropriate emergency care. For patients with Grade 1, 2, or 3 reactions, reduce the
infusion rate when re-starting the infusion.
To reduce the risk of delayed infusion reactions, administer oral corticosteroids to all patients following
DARZALEX infusions. Patients with a history of chronic obstructive pulmonary disease may require
additional post-infusion medications to manage respiratory complications. Consider prescribing short- and
long-acting bronchodilators and inhaled corticosteroids for patients with chronic obstructive pulmonary
disease.
Interference with Serological Testing – Daratumumab binds to CD38 on red blood cells (RBCs) and
results in a positive Indirect Antiglobulin Test (Indirect Coombs test). Daratumumab-mediated positive
indirect antiglobulin test may persist for up to 6 months after the last daratumumab infusion.
Daratumumab bound to RBCs masks detection of antibodies to minor antigens in the patient’s serum. The
determination of a patient’s ABO and Rh blood type are not impacted. Notify blood transfusion centers of
this interference with serological testing and inform blood banks that a patient has received
DARZALEX. Type and screen patients prior to starting DARZALEX.
Neutropenia – DARZALEX may increase neutropenia induced by background therapy. Monitor
complete blood cell counts periodically during treatment according to manufacturer’s prescribing
information for background therapies. Monitor patients with neutropenia for signs of infection.
DARZALEX dose delay may be required to allow recovery of neutrophils. No dose reduction of
DARZALEX is recommended. Consider supportive care with growth factors.
Thrombocytopenia – DARZALEX may increase thrombocytopenia induced by background therapy.
Monitor complete blood cell counts periodically during treatment according to manufacturer’s prescribing
information for background therapies. DARZALEX dose delay may be required to allow recovery of
platelets. No dose reduction of DARZALEX is recommended. Consider supportive care with transfusions.
Interference with Determination of Complete Response – Daratumumab is a human IgG kappa
monoclonal antibody that can be detected on both the serum protein electrophoresis (SPE) and
immunofixation (IFE) assays used for the clinical monitoring of endogenous M-protein. This interference can
impact the determination of complete response and of disease progression in some patients with IgG kappa
5
myeloma protein.
Adverse Reactions – The most frequently reported adverse reactions (incidence ≥20%) in clinical trials were:
infusion reactions, neutropenia, thrombocytopenia, fatigue, nausea, diarrhea, constipation, vomiting, muscle
spasms, arthralgia, back pain, pyrexia, chills, dizziness, insomnia, cough, dyspnea, peripheral edema, peripheral
sensory neuropathy and upper respiratory tract infection.
In patients who received DARZALEX in combination with bortezomib, melphalan, and prednisone (DVMP), the
most frequently reported adverse reactions (incidence ≥20%) were: upper respiratory tract infection (48%), infusion
reactions (28%), and peripheral edema (21%). Serious adverse reactions (≥2% compared to the VMP arm) were
pneumonia (11%), upper respiratory tract infection (5%), and pulmonary edema (2%). Treatment-emergent Grade
3-4 hematology laboratory abnormalities ≥20% were lymphopenia (58%), neutropenia (44%), and
thrombocytopenia (38%).
In patients who received DARZALEX in combination with lenalidomide and dexamethasone, the most
frequently reported adverse reactions (incidence ≥20%) were: upper respiratory tract infection (65%), infusion
reactions (48%), diarrhea (43%), fatigue (35%), cough (30%), muscle spasms (26%), nausea (24%), dyspnea
(21%) and pyrexia (20%). The overall incidence of serious adverse reactions was 49%. Serious adverse
reactions (≥2% compared to Rd) were pneumonia (12%), upper respiratory tract infection (7%), influenza
(3%), and pyrexia (3%). Treatment-emergent Grade 3-4 hematology laboratory abnormalities ≥20% were
neutropenia (53%) and lymphopenia (52%).
In patients who received DARZALEX in combination with bortezomib and dexamethasone, the most
frequently reported adverse reactions (incidence ≥20%) were: peripheral sensory neuropathy (47%), infusion
reactions (45%), upper respiratory tract infection (44%), diarrhea (32%), cough (27%), peripheral edema
(22%), and dyspnea (21%). The overall incidence of serious adverse reactions was 42%. Serious adverse
reactions (≥2% compared to Vd) were upper respiratory tract infection (5%), diarrhea (2%) and atrial fibrillation
(2%). Treatment-emergent Grade 3-4 hematology laboratory abnormalities ≥20% were lymphopenia (48%)
and thrombocytopenia (47%).
In patients who received DARZALEX in combination with pomalidomide and dexamethasone, the most
frequent adverse reactions (>20%) were fatigue (50%), infusion reactions (50%), upper respiratory tract infection
(50%), cough (43%), diarrhea (38%), constipation (33%), dyspnea (33%), nausea (30%), muscle spasms (26%),
back pain (25%), pyrexia (25%), insomnia (23%), arthralgia (22%), dizziness (21%), and vomiting (21%). The
overall incidence of serious adverse reactions was 49%. Serious adverse reactions reported in ≥5% patients
included pneumonia (7%). Treatment-emergent hematology Grade 3-4 laboratory abnormalities ≥20% were
anemia (30%), neutropenia (82%), and lymphopenia (71%).
6
In patients who received DARZALEX as monotherapy, the most frequently reported adverse reactions
(incidence ≥20%) were: infusion reactions (48%), fatigue (39%), nausea (27%), back pain (23%), pyrexia
(21%), cough (21%), and upper respiratory tract infection (20%). The overall incidence of serious adverse
reactions was 33%. The most frequent serious adverse reactions were pneumonia (6%), general physical
health deterioration (3%), and pyrexia (3%). Treatment-emergent Grade 3-4 hematology laboratory
abnormalities ≥20% were lymphopenia (40%) and neutropenia (20%).
DRUG INTERACTIONS
Effect of Other Drugs on Daratumumab: The coadministration of lenalidomide, pomalidomide or bortezomib
with DARZALEX did not affect the pharmacokinetics of daratumumab.
Effect of Daratumumab on Other Drugs: The coadministration of DARZALEX with bortezomib or
pomalidomide did not affect the pharmacokinetics of bortezomib or pomalidomide.

Sangamo Therapeutics Reports Second Quarter 2018 Financial Results

On August 8, 2018 Sangamo Therapeutics, Inc. (NASDAQ: SGMO) reported second quarter 2018 financial results and recent accomplishments (Press release, Sangamo Therapeutics, AUG 8, 2018, View Source [SID1234528535]).

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"In the first half of 2018 we made strong progress on important initiatives including our clinical development programs and execution of a significant collaboration with Kite-Gilead for the use of ZFNs for engineered cell therapies in oncology," said Sandy Macrae, CEO of Sangamo. "More recently, with our proposed acquisition of TxCell, we have the opportunity to seize a leadership position in the development of gene-edited cell therapies for immunological diseases, one of our therapeutic areas of focus for our proprietary pipeline."

Macrae continued: "Today we announced positive preliminary data from the Alta clinical trial evaluating SB-525 gene therapy for hemophilia A. These are the first efficacy data from our clinical programs using AAV6. We are looking forward to the September 5th SSIEM presentation of preliminary data from the CHAMPIONS Study evaluating SB-913, our in vivo genome editing candidate for MPS II."

Recent Highlights
Corporate

Announced the proposed acquisition of TxCell, positioning Sangamo as a leader in CAR-Treg development
Appointed Karen Smith, M.D., Ph.D., to the Board of Directors, and Edward Rebar, Ph.D., as Senior Vice President and Chief Technology Officer
Clinical

Today announced positive preliminary data from the Phase 1/2 Alta Study evaluating SB-525 gene therapy for hemophilia A
Treated the fifth and sixth patients in the SB-913 Phase 1/2 CHAMPIONS Study for MPS II
Treated the first patient in the SB-318 Phase 1/2 EMPOWERS Study for MPS I
Received Clinical Trial Authorisation (CTA) in the U.K. for enrollment of subjects into ongoing Phase 1/2 clinical trials evaluating SB-318 and SB-913
Enrolled the first patient in the Phase 1/2 Thales Study evaluating ST-400 gene-edited cell therapy for the treatment of beta-thalassemia
Research

Delivered three oral and four poster presentations during the 21st Annual Meeting of the American Society of Gene & Cell Therapy (ASGCT) (Free ASGCT Whitepaper) held in Chicago, IL from May 16-19, 2018
Second Quarter Ended June 30, 2018 Financial Results
For the second quarter ended June 30, 2018, Sangamo reported a consolidated net loss of $16.6 million, or $0.17 per share, compared to a net loss of $12.5 million, or $0.17 per share, for the same period in 2017. As of June 30, 2018, the Company had cash, cash equivalents, marketable securities and interest receivable of $574.2 million.

Revenues for the second quarter ended June 30, 2018 were $21.4 million, compared to $8.3 million for the same period in 2017. The increase in revenues was primarily related to the collaborations and licensing agreements with Pfizer, for hemophilia A, and Kite, a Gilead company, for gene-edited cell therapies for oncology. Second quarter 2018 revenues were primarily generated from Sangamo’s collaboration agreements with Kite, Pfizer and Bioverativ, a Sanofi company.

Total operating expenses for the second quarter ended June 30, 2018 were $40.6 million, compared to $21.0 million for the same period in 2017. Research and development expenses were $29.3 million for the second quarter ended June 30, 2018, compared to $15.0 million for the same period in 2017. The increase was primarily due to clinical and manufacturing expenses in support of current clinical studies and investment in dedicated manufacturing capacity. General and administrative expenses were $11.3 million for the second quarter ended June 30, 2018, compared to $6.0 million for the same period in 2017. The increase was primarily due to salaries and related costs and other professional fees in support of overall Company growth.

Financial Guidance for 2018
Sangamo will provide updated guidance on expected operating expenses in future quarterly reporting periods. The Company updates cash guidance as follows:

Cash and Investments: Sangamo expects a December 31, 2018 balance of cash, cash equivalents, marketable securities and interest receivable of at least $380 million. This anticipated cash balance is inclusive of research funding from existing collaborators and recent financings.
Conference Call
Sangamo will host a conference call today, August 8, 2018, at 5:00 p.m. ET, which will be open to the public. The call will also be webcast live and can be accessed via a link on the Sangamo Therapeutics website in the Investors and Media section under Events and Presentations.

The conference call dial-in numbers are (877) 377-7553 for domestic callers and (678) 894-3968 for international callers. The conference ID number for the call is 7179826. For those unable to listen in at the designated time, a conference call replay will be available for one week following the conference call, from approximately 8:00 p.m. ET on August 8, 2018 to 11:59 p.m. ET on August 15, 2018. The conference call replay numbers for domestic and international callers are (855) 859-2056 and (404) 537-3406, respectively. The conference ID number for the replay is 7179826.