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Director, Communications
Targeted Genetics Corporation
TARGETED GENETICS ANNOUNCES STRATEGIC RESTRUCTURING TO REDUCE EXPENSES AND ADVANCE LEAD
INFLAMMATORY ARTHRITIS PRODUCT CANDIDATE
Seattle, WA January 24, 2005 Targeted Genetics Corporation (Nasdaq: TGEN) announced today the
restructuring of its operations to reduce expenses and realign resources to advance its lead
product candidate, tgAAC94, through clinical trials as quickly as possible. tgAAC94 is the
Company s anti tumor necrosis factor alpha (TNF- ), product candidate for the treatment of
inflammatory arthritis.
Going forward, the company is deploying the majority of its resources to identify the clinical
utility of tgAAC94 and will also continue to utilize its development and manufacturing capabilities
in moving its collaborations forward. As part of this restructuring, Targeted Genetics reduced its
workforce by approximately 27% or 26 employees, primarily in early-stage research and development
groups and in operations and general and administrative functions.
The decision to restructure the company has been extremely difficult for everyone involved. We
sincerely appreciate the contributions from all of our employees and are providing outplacement
services to those affected by this realignment, said H. Stewart Parker, President and CEO of
Targeted Genetics. As a result of this restructuring, we anticipate our cash burn for 2006 to be
at least 20% to 25% less than 2005 results, giving us a better opportunity to achieve our goals for
2006 and position the company for the future.
Targeted Genetics key goals for 2006 are as follows:
We believe that our targeted, localized approach to treating inflammatory disease has significant
clinical and commercial potential, and these changes give us more time and resources necessary to
implement the tgAAC94 clinical studies and strategic initiatives aimed at moving us closer to
commercialization, adds Parker.
Anti-TNF- therapies are now widely used in the treatment of inflammatory arthritis. However, a
large percentage of patients being treated with systemic anti-TNF- therapies do not fully respond.
Targeted Genetics has gathered initial positive data pertaining to the safety of intra-articular
delivery of tgAAC94, and clinical trials are ongoing, targeting those patients who are on
concurrent systemic anti-TNF protein therapies, but still have residual disease in one or several
Targeted Genetics plans to release its financial results for the fourth quarter and year-ended 2005
before the open of the Nasdaq National Market System on Wednesday, March 1, 2006. Management will
host a conference call with investors and financial analysts to discuss these results and to
provide an update to its product development initiatives at 10:30 a.m. Eastern Time (7:30 a.m.
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, HIV/AIDS and other acquired and inherited diseases with significant unmet
medical need. Targeted Genetics uses its considerable knowledge and capabilities in the development
and manufacturing of gene delivery technologies to advance a diverse product development pipeline.
Its product development efforts target inflammatory arthritis, HIV/AIDS, congestive heart failure,
Huntington s disease, and hyperlipidemia. To learn more about Targeted Genetics, visit its website
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This release contains forward-looking statements regarding our business strategy, our cash
resources and future financial condition, our ability to obtain additional funding or enter into
additional strategic collaborations, our product development, our clinical trials, our personnel
and other statements about our plans, objectives, intentions and expectations. In particular, the
statements regarding the Company s future plans are forward-looking statements. These statements,
involve current expectations, forecasts of future events and other statements that are not
historical facts. Inaccurate assumptions and known and unknown risks and uncertainties can affect
the accuracy of forward-looking statements. Factors that could affect our actual results include,
but are not limited to, our ability to obtain additional funding or enter into additional strategic
collaborations, our ability to attract and retain qualified personnel, the timing, nature and
results of our clinical trials, potential development of alternative technologies or more effective
products by competitors, our ability to obtain and maintain regulatory or institutional approvals,
our ability to obtain, maintain and protect our intellectual property and our ability to raise
capital when needed, as well as other risk factors described in the section entitled Factors
Affecting Our Operating Results, Our Business and Our Stock Price in our Quarterly Report on Form
10-Q for the period ended September 30, 2005. You should not rely unduly on these forward-looking
statements, which apply only as of the date of this release. We undertake no duty to publicly
announce or report revisions to these statements as new information becomes available that may
change our expectations.