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Tengion (TNGN), Q4/10 and FY10 Results

The net loss was $5.945M and a net loss of $0.48 per share

R&D expenses were $2.7M while G&A logged in at $1.647M. Depreciation was $1.2M with total operating losses of $5.59M. Interest income was $14.9K but, interest expense was $367K. The loss was based n weighted average of common and diluted shares of 12.365M. Total stock holders (deficit) equity was $11.059M.

  • Cash and cash equivalents was $11.9M at 12/31/10.

TNTN sold securities (3/11) in a private placement transaction with net proceeds of approximately $28.9M. In 3/11, TNTN refinanced the outstanding debt owed to 1 of its lenders.  Pursuant to the terms of the refinancing, TNTN repaid the outstanding principal amount of $4.5M and borrowed $5M from the lender.

  • Based upon the currently expected level of operating expenditures and debt repayments, TNTN expects to be able to fund its operations through 5/12.

For FY10, TNGN reported an adjusted net loss of $25.8M, or $2.80 per basic and diluted common share, compared with an adjusted net loss of $31.7M, or $4.99 per basic and diluted common share, for FY09.  The decreased adjusted net loss for FY10 was primarily due to lower R&D expense of $5.1M and lower interest expense of $1.4M.  The decrease in R&D expenses during the FY10 was primarily due to lower preclinical expenses and the impact of reduced headcount. In addition, the receipt of QTDP grants totaling $1M was recorded as a credit to R&D expense. Interest expense decreased during the FY10 period due to lower average debt balances resulting from the full-year impact of the scheduled end of interest-only payments during 2009. The loss per basic and diluted common share for FY10 was significantly affected by the IPO of 6M shares in 4/10.

  • Medtronic (NYSE:MDT) participated in the financing and as part of its investment and secured a right of first refusal on TNGN’s lead preclinical program, the Neo-Kidney Augment™ through 10/31/13.