Tengion soars on raising $34M in support of organ regeneration platform

July 2, 2013 by Arezu Sarvestani

Tengion Inc. raises $33.6 million from a pair of investors supporting its Neo-Kidney Augment and Neo-Urinary Conduit clinical programs.

Tengion logo

North Carolina regenerative medicine company Tengion (NSDQ:TNGN) raised $33.6 million in support of clinical studies of its leading programs, the Neo-Kidney Augment and Neo-Urinary Conduit programs. TNGN shares jumped 15.3% to 68¢ around 12:40 p.m. today, up from an opening price of 64¢.

Tengion touted a $15 million cash payment from Celgene Corp. in exchange for 1st negotiation rights for the Neo-Kidney program. The companies also entered into a collaboration agreement that grants Celgene an exclusive option to acquire assets that include technology related to Tengion's neo-esophageal implant.

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Tengion also raised $18.6 million through sale of senior secured convertible note financing, joined by new and existing investors, according to a company statement. Funders included existing investors RA Capital Management LLC, Deerfield Management Co. LP, Bay City Capital and HealthCap, as well as new investors Perceptive Life Sciences and QVT Financial LP.