Targeted Genetics Corp. (NASDAQ-NNM:TGEN) raised $12million in completion of its initial public offering (IPO) of 2 millionshares, filed on April 1. Hambrecht and Quist Inc. of New York andVector Securities International Inc. of Deerfield, Ill. co-managedthe underwriting group.The shares were disposed of at $6 each. The company had hoped tosell them for $10 to $12 each. Stewart Parker, Targeted Genetics'president and CEO, attributed the outcome to poor marketconditions and said it would not force the company to cut back onits plans. "We have a lot of milestones that will occur, so we canpush ahead and look at alternatives," Parker said.The Seattle company is focused on cytotoxic T lymphocyte (CTL)immunotherapy, in vivo adeno-associated virus (AAV) therapy, andstem cell therapy. The company has two Phase I clinical trials underway using CTLs as a treatment for HIV infection. The trials involveisolating CD8 positive CTLs from HIV-positive subjects, modifyingthe cells to contain the HyTK gene, and then reinserting them intothe patients as markers that show the migration and survival of thecells. One trial is studying this approach in HIV patients undergoingallogeneic bone marrow transplants, the second in HIV seropositiveasymptomatic patients.The company also has a third Phase I trial underway using markergenes to track and monitor stem cells that have been reinfused intocancer patients following cancer therapy.Parker said seven new clinical trials are scheduled to begin in thenext 12 months, including one for AAV therapy in the treatment ofcystic fibrosis. _ Philippa Maister
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