Healthcare Industry News: radiopharmaceuticals
News Release - November 19, 2008
Tengion Announces Second Closing of Series C FinancingFunds to Support Clinical Trials for Tengion Neo-Bladder(TM) Franchise
EAST NORRITON, Pa., Nov. 19 -- (Healthcare Sales & Marketing Network) -- Tengion Inc., a clinical stage regenerative medicine company focused on the development of neo-organs and neo-tissues, today announced that it has completed a second closing of its Series C financing, receiving a total of approximately $21 million in additional equity capital from the company's existing institutional equity investor base along with new investor, Safeguard Scientifics, Inc. Tengion also announced today that Gary J. Kurtzman, M.D., Vice President and Managing Director of Safeguard Scientifics' Life Sciences Group, has joined Tengion's Board of Directors.
In conjunction with the receipt of additional equity capital, Tengion successfully restructured a portion of its venture debt, which will positively contribute to its cash utilization in 2009.
Participants in this financing round include new investor Safeguard Scientifics, along with Tengion's full roster of current institutional investors: Bain Capital LLC, Johnson & Johnson Development Corporation, Deerfield Partners, Quaker BioVentures, Oak Investment Partners, HealthCap and L Capital Partners
"During this challenging time across the debt and equity markets, we feel that our ability to attract additional financing from leading biotech investors - both new and existing - exemplifies the strength of our data, the experience of our management team and the promise and potential for Tengion's products to meet the critical need of patients with organ failure," said Steven Nichtberger, M.D., President and Chief Executive Officer of Tengion. "We welcome Safeguard Scientifics not only to our roster of premiere life sciences investors, but also welcome Safeguard's representative, Dr. Kurtzman, to our distinguished Board of Directors."
Safeguard Scientifics provides growth capital for entrepreneurial and innovative technology and life sciences companies. As part of Safeguard's Life Sciences Group, Dr. Kurtzman brings more than 17 years of experience in both the operations and investment sides of life sciences companies. An entrepreneurial leader with a background in medicine and research, Dr. Kurtzman applies this expertise to identifying, investing in and supporting emerging life sciences companies in diagnostics, devices and specialty pharmaceuticals and services.
Dr. Kurtzman joined Safeguard Scientifics from BioAdvance, a Pennsylvania state initiative committed to funding early-stage life sciences companies, where he served as Managing Director and Chief Operating Officer. Previously, he was Chief Executive Officer of Pluvita Corporation, Chief Operating Officer of Genovo and held various positions at Avigen and Gilead Sciences. Dr. Kurtzman currently sits on the Board of Directors for Safeguard's partner companies Advanced BioHealing, Alverix, Avid radiopharmaceuticals and NuPathe.
"Safeguard Scientifics looks to partner with life sciences companies that are poised to dramatically revolutionize and improve upon today's standards in patient care," said Dr. Kurtzman. "Tengion is a leader in the emerging field of regenerative medicine, addressing the most critical issues facing organ failure patients. With late stage products in development, we believe that Tengion is well-positioned for success and we are looking forward to working with the Tengion team to accelerate growth and build long-term value."
The securities offered and sold in the Series C financing were not registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Tengion, a clinical stage regenerative medicine company, focuses on developing, manufacturing and commercializing human neo-organs and neo-tissues using our Autologous Organ Regeneration Platform(TM). Tengion uses biocompatible materials and a patient's own (autologous) cells to create a functional neo-organ or neo-tissue that is designed to catalyze the body's innate ability to regenerate. Tengion's product candidates may ultimately address the most critical problems facing organ and tissue failure patients, enabling people to lead healthier lives without donor transplants or the side effects of related therapies. www.tengion.com
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