Targeted Genetics Completes $5.0 Million Public Offering of Common Stock
SEATTLE, Mar 14, 2006 (BUSINESS WIRE) -- Targeted Genetics Corporation (NASDAQ: TGEN) today announced that it has completed a public offering of approximately 12.8 million shares of its common stock at a price of $0.39 per share to institutional investors, for gross proceeds of approximately $5 million. The shares were offered under the Company's shelf registration statement.
The Company began 2006 with $14.2 million in cash and cash equivalents. On January 24, 2006, the Company restructured operations to reduce expenses and extend the current cash horizon, reducing its estimated cash burn to a range of $13 to $16 million.
"This financing, combined with the $9 million in funding expected from our current partners and contracts, positions us for growth and success in 2006 and beyond," said H. Stewart Parker, President and CEO of Targeted Genetics. "We have intensified our focus on the clinical advance of our inflammatory arthritis program and this financing will enable us to achieve a number of important clinical and business development milestones in 2006."
Targeted Genetics' Focus in 2006:
-- To pursue aggressive development of our inflammatory arthritis program: We continue to be excited about early human data generated in the advancement of tgAAC94 as a therapy to treat inflammatory arthritis, and intend to focus our resources on further clinical advancement of this program.
-- To deliver on current partnered opportunities: Our product development collaborations focused on HIV/AIDS, congestive heart failure, and Huntington's disease continue to progress, and will generate important clinical and preclinical data in 2006. These collaborations serve to further validate the broad applicability of AAV in multiple disease settings, and provide important revenue to the company. They also allow us to monetize our earlier investment in AAV scale up, manufacturing, and product development.
-- To pursue additional product opportunities: We intend to seek additional product opportunities in therapeutic areas of interest that are complementary to our lead product opportunity in inflammatory arthritis in the context of mergers and acquisitions, as well as product in-licensing. The Company is also pursuing opportunities to further leverage its investment in AAV manufacturing and scale up, through additional product collaborations, or through strategic relationships with contract manufacturers.
The Company plans to use the net proceeds of approximately $4.8 million for working capital and other general corporate purposes. The Company directly placed the shares with institutional investors.
About Targeted Genetics
Targeted Genetics Corporation is a biotechnology company committed to the development and commercialization of innovative targeted molecular therapies for the prevention and treatment of inflammatory arthritis and other acquired and inherited diseases with significant unmet medical need. The Company uses its considerable knowledge and capabilities in the development and manufacturing of gene delivery technologies to advance a diverse product development pipeline. The Company's product development efforts target inflammatory arthritis, AIDS prophylaxis, congestive heart failure, Huntington's disease and hyperlipidemia. To learn more about Targeted Genetics, visit the Company's website at www.targetedgenetics.com.
SOURCE: Targeted Genetics Corporation
CONTACT: Investors and Media: Targeted Genetics Corporation Director, Communications Stacie D. Byars, 206-521-7392
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