SAN FRANCISCO-- Targeted Genetics Corp. shares jumped 22% to $2.62 in Tuesday morning trade after the Seattle-based biotech company said it has agreed to restructure repayment of $8.15 million of debt with Biogen Idec. Inc. Under the terms of the new deal, Biogen has agreed to convert $5.65 million of debt into 1 million shares of Targeted Genetics common stock. Targeted Genetics said it will pay $500,000 of the remaining debt immediately, with the remaining $2 million to be paid on a new repayment schedule. As a result of the agreement, Biogen's stake in Targeted Genetics will increase to 19.9%.
Targeted Genetics Corporation, a clinical-stage biotechnology company, engages in the research and development of gene therapy products and technologies for the treatment of acquired and inherited diseases. Its products include tgAAC94, a Phase I/II trial product for the treatment of inflammatory arthritis and other inflammatory diseases; and tgAAC09, a Phase II clinical product, which is used for the treatment of HIV/AIDS. The company also engages in the development, manufacture, and clinical evaluation of AAV-based therapies with Celladon’s portfolio of genes and cardiovascular expertise for the treatment of congestive heart failure. In addition, Targeted Genetics provides novel therapies for the treatment of Huntington's disease, an incurable neurodegenerative disorder.
Gene therapy gets a ton of funding right now for the treatment of just about any disease that a gene has been identified and located. Remember there are lots of forms of gene therapy, such as gene disruption by RNAi; DNAi, or over-expression of a functional gene to overcompensate for the disease causing gene.
tgAAC94 is a special delivery vector for the expression of genes (they are using it by introducing it intra-articular [injection directly into the joint space] to express the TNF receptor ( a cytokine the immune system naturally makes) for arthritis.
TGEN finished after hours trading up another 5% to close up the day at $3.05.
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