Full Press Release Details
Genetics Corporation
GENETICS AND BIOGEN IDEC RESTRUCTURE DEBT
November 7, 2006 - Targeted Genetics Corporation (Nasdaq: TGEN) announced that
it has entered into a newly amended agreement with Biogen Idec, Inc. (Nasdaq:
BIIB) to restructure repayment of $8.15 million of debt. Under the terms of
amendment, Biogen Idec has agreed to convert $5.65 million of debt into 1
million shares of Targeted Genetics common stock. Targeted Genetics will pay
$500,000 of the remaining debt immediately and the remaining $2 million in
will be paid according to a new repayment schedule.
result of the restructured relationship, Biogen Idec's equity holdings in
Targeted Genetics will increase to 19.9% of the total outstanding common
extremely pleased to have successfully modified the debt arrangement with Biogen
Idec. The successful renegotiation of this debt with Biogen Idec reduces our
long-term cash needs and strengthens the company financially," said H. Stewart
Parker, President and Chief Executive Officer. "As a result, we are able to work
toward accomplishing additional measures to leverage value from our capabilities
to build additional financial resources."
this amended agreement, Targeted Genetics has agreed to make payments of $1
million in August 2007 and $1 million in August 2008. Such payments are subject
to acceleration in the event of receipt of certain milestone payments from
parties or certain key events. The Funding Agreement between Targeted Genetics
and Biogen Idec originated in August 2000 and was first restructured in
Genetics Corporation is a biotechnology company committed to the development
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 at
Harbor Statement under the Private Securities Litigation Reform Act of
release contains forward-looking statements regarding our debt restructuring
with Biogen Idec, our cash horizon and financial needs, our ability to raise
capital and other statements about our plans, objectives, intentions and
expectations. 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 raise capital when
needed, our ability remain compliant with the Nasdaq Capital Market continued
listing requirements, our ability to obtain, maintain and protect our
intellectual property, the timing, nature and results of research and clinical
trials, potential development of alternative technologies or more effective
processes by competitors, and, our ability to obtain and maintain regulatory
institutional approvals, as well as other risk factors described in Item 1A.
Risk Factors in our report on Form 10-K for the year ended December 31, 2005
updated in Item 1A. Risk Factors in our Form 10-Q for the quarter ended June
2006. 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.