Tengion: Upsized IPO Prices Below Range

| About: Tengion, Inc. (TNGNQ)

Tengion (TNGN), a regenerative medicine company, priced its IPO on April 8th at $5 per share for 6 million shares, below range.

Business Overview (from prospectus)

We believe we are the only regenerative medicine company focused on discovering, developing, manufacturing and commercializing a range of replacement organs and tissues, or neo-organs and neo-tissues. We currently create these functional neo-organs and neo-tissues using a patient’s own cells, or autologous cells, in conjunction with our Organ Regeneration Platform. We believe our proprietary product candidates harness the intrinsic regenerative pathways of the body to regenerate organs and tissues that are native-like, or substantially similar to native organs and tissues. We manufacture our product candidates in our scalable facilities using efficient and repeatable proprietary processes and we have implanted our neo-organs in clinical trials. We intend to develop our technology to address unmet medical needs in urologic, renal, gastrointestinal and vascular diseases.

Offering: 6 million shares at $5 per share. (Expected offering was 4.4 million shares at $8 - $10 per share.) Net proceeds of approximately $9.0 million will be used to fund Phase I clinical trial for Neo-Urinary Conduit, approximately $10.0 million to fund preclinical research and development activities for Neo-Kidney Augment, approximately $5.0 million for research and development and $4.3 million for debt retirement.

Lead Underwriters: Piper Jaffray (NYSE:PJC), Leerink Swann

Financial Highlights:

Tengion (TNGN) is a development stage company and have not generated revenues or been profitable since inception. There is no current source of revenues much less profits, to sustain the present activities, and no revenues will likely be available until the product candidates are approved by the FDA or comparable regulatory agencies in other countries and successfully marketed.


Our industry is subject to rapid and intense technological change. While we do not believe we currently have any commercial competitors who are developing autologous organs and tissues for the target populations that we are addressing, we face, and will continue to face, intense competition from medical device, pharmaceutical, biopharmaceutical and biotechnology companies, as well as numerous academic and research institutions and governmental agencies who are generally engaged in tissue engineering and regenerative medicine activities or funding, both in the United States and abroad. In addition, several large pharmaceutical companies with much greater resources have demonstrated a strategic interest in regenerative medicine, including Sanofi Aventis (NYSE:SNY), Johnson & Johnson (NYSE:JNJ), Pfizer (NYSE:PFE) and Celgene (NASDAQ:CELG).

Companies that are researching, developing and marketing products to treat bladder dysfunction include Allergan (NYSE:AGN), which is developing Botox for bladder dysfunction; Speywood Biopharma, which is developing Dysport for bladder dysfunction; and Medtronic (NYSE:MDT), which is marketing Interstim for bladder dysfunction. Further, many large pharmaceutical companies market anticholinergenic medications, such as Detrol and Ditropan, which can be used to treat bladder dysfunction.

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