EAST NORRITON, Pa., Feb. 16, 2011 /PRNewswire/ -- Tengion, Inc. (Nasdaq: TNGN), a leader in regenerative medicine, today announced that it has been engaged in negotiations with a publicly traded company relating to the acquisition of Tengion through a stock-for-stock merger. As a result of the recent increases in the trading price and volume of Tengion's common stock, Tengion's potential acquirer has terminated merger negotiations.
As has previously been stated in the Company's filings with the Securities and Exchange Commission, Tengion believes it has sufficient cash to fund its operations into April 2011. If Tengion cannot secure either a sale transaction or alternative financing through partnership or equity investment, Tengion may need to take steps to wind down its operations so as to preserve the value of its assets for the benefit of its creditors and stockholders.
Tengion, a clinical-stage biotechnology company, has pioneered the Organ Regeneration Platform™ that enables the Company to create proprietary product candidates that are intended to harness the intrinsic regenerative pathways of the body to produce a range of native-like organs and tissues. Tengion's product candidates seek to eliminate the need to utilize other tissues of the body for a purpose to which they are poorly suited, procure donor organs or administer anti-rejection medications. An initial clinical trial is ongoing for the Company's lead product candidate, the Neo-Urinary Conduit™, an autologous implant that is intended to catalyze regeneration of native-like bladder tissue for bladder cancer patients requiring a urinary diversion following bladder removal. The Company's lead preclinical program is the Neo-Kidney Augment™, which is designed to delay or prevent the need for dialysis or transplantation in patients at risk for kidney failure. Tengion has also applied its technology in two Phase II clinical trials for Tengion's Neo-Bladder Augment™ for the treatment of neurogenic bladder. Tengion has worldwide rights to its product candidates. For more information, please visit www.tengion.com.
Certain statements set forth above may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to the ability to finance Tengion's operations into April 2011 and the potential need to wind down operations. Although Tengion believes that these statements are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, there are a number of factors that may cause actual results to differ from these statements. For instance, there can be no assurance that: (i) Tengion will be able to enter into a definitive agreement with respect to a sale transaction or alterative financing, or (ii) even if Tengion enters into a definitive agreement related to a sale transaction or alternative financing, there can be no assurance that the terms of such an agreement would be favorable to Tengion and its stockholders and such a transaction would likely be subject to a number a closing conditions, such as approval by Tengion's stockholders. For additional factors which could cause actual results to differ from expectations, reference is made to the reports filed by the Company with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. The forward looking statements in this release are made only as of the date hereof and Tengion disclaims any intention or responsibility for updating predictions or expectations in this release.
SOURCE Tengion, Inc.