Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Restructurings -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (61)	12/17/2002 8:51:44 AM
From: Icebrg	Respond to of 270

Targeted Genetics 40% Targeted Genetics Adjusts Business Strategy to Pursue Near Term Opportunities Tuesday December 17, 8:30 am ET Reduction in Expenses and Focus on Key Strategic Programs to Extend Cash Horizon Seattle, Dec. 17 /PRNewswire-FirstCall/ -- Targeted Genetics Corporation (Nasdaq: TGEN - News) today announced that it is initiating a strategic adjustment to its business strategy in order to best leverage its most promising product development opportunities and to extend its operating capital. The Company will focus on filing INDs for its product development programs in rheumatoid arthritis and AIDS prophylaxis in 2003 and on advancing its clinical development program in cystic fibrosis. In concert with the narrowing of focus around the Company's key strategic assets and programs, additional cost reduction measures are being implemented with the goal of extending the Company's operating capital to the end of 2003. Adjustments to the Company's operating plan will include reductions in expenses and continued pursuit of partnerships or other strategic transactions that would provide value to the Company and its shareholders. Toward this end, the Company is undertaking the following actions: -- Reducing and consolidating fixed operating costs; -- Identifying and pursuing development partners for the Company's hemophilia, cystic fibrosis and oncology product development programs; -- Exploring opportunities to derive revenue by leveraging the Company's manufacturing capacity; -- Pursuing capital raising options available to the Company; -- Consolidating the Company's operations in Seattle. Additionally, the Company has notified approximately 70 employees that, subject to the outcome of these activities, their positions will be eliminated in 60 days. The 60-day notice is being provided in keeping with the Worker Adjustment and Retraining Notification (WARN) Act. "2002 has been a challenging year for many in the biotechnology industry, and our circumstances are not unique. We are adjusting our strategy so as to best weather this period of economic uncertainty," said H. Stewart Parker, President and Chief Executive Officer of Targeted Genetics. "While we have made significant progress in a number of our programs over the past 18 months, we cannot pursue all of our opportunities with our current financial resources. Therefore, we are concentrating our resources on our product development programs in AIDS prophylaxis, arthritis and cystic fibrosis while we pursue our options to secure additional funding. We believe that the best way to realize the potential of our programs and our technologies is to extend our operating horizon so as to provide additional time to secure the financial resources we need to fund these promising opportunities. The reduction in expenses and consolidation of our operations that we are undertaking now are intended to provide the operating horizon and reduced burn rate to better help us to accomplish these objectives." Targeted Genetics develops gene therapy products for treating acquired and inherited diseases. The Company has a lead clinical product development program targeting cystic fibrosis and a promising pipeline of product candidates focused on hemophilia, arthritis, cancer and AIDS prophylaxis. The Company has a broad platform of gene delivery technologies and, through its majority-owned subsidiary, CellExSys, Inc., a promising body of technology for cellular therapy. For more information about Targeted Genetics Corporation and CellExSys, Inc., please visit the Company's web site at targetedgenetics.com .