Targeted Genetics Corp., a gene therapy company with enough cashto keep operating through this year, registered with the Securities andExchange Commission to sell 2.1 million common shares in an effortto raise about $10 million.
James Johnson, chief financial officer of Seattle-based TargetedGenetics, said funds from the sale, expected in late May or earlyJune, will support clinical and research development activitiesthrough mid- to late-1996.
The offering of 2.1 million shares, which will boost the company'stotal outstanding shares to more than 11 million, are being sold toinstitutional investors. Based on Targeted Genetics' closing stock(NASDAQ:TGEN) price Monday of $4.87, when the shares wereregistered, the offering would raise about $10.2 million in grossproceeds. With $200,000 in expenses, the company would net $10million.
At the end of 1994, Targeted Genetics said it had $11.5 million incash and an annual burn rate of equal amount. The company, whosegene therapy products are in early stage clinical trials, is developingtreatments based on cytotoxic T lymphocyte immunotherapy (CTL),in vivo adeno-associated virus therapy and stem cell therapy.
Targeted Genetics has two Phase I trials under way: one testing theCTL-immunotherapy for treating HIV; and the second to monitor theintroduction of a marker gene in peripheral blood stem cells.Enrollment in another Phase I trial has begun to test stem cell genetherapy in treating Gaucher's disease.
Targeted Genetics closed Tuesday at $4.50, down 37 cents. _Charles Craig
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