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.
Without reiterating what you can already tell by glancing at the pipeline (above), according to the company's website:
Tengion Neo-Bladder Augment™ has completed two Phase 2 clinical trials in patients with neurogenic bladder: Pediatric patients with spina bifida and adult patients with spinal cord injury.
Welcome to the same circle of ongoing research that pharmaceutical giants Pfizer (NYSE:PFE), Merck Co. (NYSE:MRK), Bayer AG (OTC:BYERF) and others are sinking billions into. The regenerative medicine industry is estimated to grow to $118 Billion by 2013. And a quick run by the old clinical trial database reveals startling numbers in clinical trials for spinal cord injury.
So it becomes a question of whether or not an arm of a stable pharmaceutical company values Tengion's technologies enough to enter into a relationship with the company or simply spare some change and buy it out.
Besides, it seems that any biotechnology company with a multiple-product pipeline and at least one candidate in late-stage clinical trials comes with a sticker price of $100M+, so why not Tengion too?
In addition, in the next week or so, Tengion will report fourth quarter financials. The report itself will be telling of management's strides in securing a partnership and may reduce fears that have plagued investors for a considerable period.
Disclosure: I am long TNGN.