Sangamo plans another mid-stage neuropathy trial

LOS ANGELES Jan 11 (Reuters) - Sangamo BioSciences Inc (SGMO.O) said on Monday it will conduct a Phase 2b trial of experimental drug SB-509 as a treatment for diabetic neuropathy, as it continues to seek a development partner for pivotal trials of the product.

Sangamo develops DNA-binding "zinc finger" proteins to modify and regulate genes. SB-509 is a zinc finger activator of vascular endothelial growth factor, which has been shown to promote the survival and development of nerve cells.

"This puts us in a position to de-risk the program significantly," Chief Executive Edward Lanphier told Reuters in a telephone interview on Friday.

He said Sangamo is "in active discussions" with potential partners and the new trial "lets the pharma world know in no uncertain terms that we are going to push this drug forward."

Lanphier said the SB-509 trial will involve patients with moderately severe, rather than mild, neuropathy -- the group shown to benefit most from the drug in earlier trials.

The Juvenile Diabetes Research Foundation will fund $3 million of the trial costs.

Sangamo, based in Richmond, California, also announced the launch of a Phase 1 trial of another experimental zinc finger compound for treatment of patients with glioblastoma multiforme, a deadly form of brain cancer. (Reporting by Deena Beasley; editing by Andre Grenon)